Industrial Producer Prices Decrease but Still Up Y-on-Y 

Industrial producer prices rose by 29.0% on average in February 2023 compared to one year earlier. Domestic output prices were up by 56.4% and non-domestic output prices by 15.8%. The faster growth in domestic output prices was due to the proportion of the energy industry, where a significant price increase occurred, being much larger in the domestic than in the non-domestic output, the Central Statistical Office reports.

In addition to the steep rise in energy prices, the increase in base material prices, the growth of wages and the weakening of the forint – over one year – also had a price-raising effect. Compared to the previous month, domestic output prices decreased by 1.3% and non-domestic output prices by 2.6%, so industrial producer prices as a whole lessened by 2.2%.

In February 2023 compared to February 2022:
Domestic output prices increased by 56.4% on average, within which they were 27.6% higher in manufacturing, representing a weight of 65%, and – owing to a drastic increase in world market prices and to amendments to the regulation of the administrative price – 127% higher in the energy industry (electricity, gas, steam and air conditioning supply), with a weight of 30%.

Prices in Hungary rose by 73.3% in energy and intermediate producer branches together, by 13.7% in capital goods producer and by 34.1% in consumer goods producer branches out of the end-use groups of the producer branches of industry.

Industrial non-domestic output prices went up by 15.8%, within which the price increase was 17.9% in manufacturing, representing a weight of 90%, and 6.4% in the energy industry, with a weight of 9.8%.

In January–February 2023 compared to January–February 2022:
Domestic output prices were 58.6% and non-domestic output prices 18.0% higher, so industrial producer prices as a whole increased by 31.3%.