Consumer prices in Hungary: vehicle fuel prices jumped by 30.7 percent – UPDATE

Consumer prices in Hungary rose by an annual 6.5 percent in October, up from 5.5 percent in the previous month, the Central Statistical Office (KSH) said on Tuesday.

Driven by higher cigarette, spirits and vehicle fuel prices, CPI is at the highest level in years and well outside of the 2-4 percent tolerance band of the National Bank of Hungary (NBH).

The October data show spirits and tobacco prices rose by 11.3 percent, lifted by a 17.6 percent increase in tobacco prices.

Prices in the category of goods that includes vehicle fuel climbed 13.0 percent as vehicle fuel prices jumped by 30.7 percent.

• read also: Is fuel more expensive in Hungary than the EU average?

Food prices increased by 5.2 percent, household energy prices edged up 0.6 percent, consumer durable prices rose by 5.4 percent, clothing prices increased by 0.9 percent, and services rose by 3.7 percent.

Harmonised for better comparison with other European Union member states,

CPI stood at 6.6 percent.

Core inflation, which excludes volatile food and fuel prices, was 4.7 percent.

CPI calculated with a basket of goods and services used by pensioners stood at 5.7 percent.

In a monthly analysis released after the publication of the KSH data, the National Bank of Hungary (NBH) said the rise in inflation in October was “primarily fueled by an increase in fuel, industrial goods and food prices”. It noted that fuel prices contributed 1.9 percentage points to headline inflation.

The NBH’s measure of core inflation excluding indirect tax effects – a bellwether indicator of underlying inflation – rose to 4.7 percent in October from 4 percent in the previous month.

The central bank’s indicator for demand-sensitive inflation, which excludes processed foods from core inflation, increased to 4.7 percent from 4.1 percent.