Hungary's annualized consumer price index inched up to 1.3% in August from 1.2% in the previous month, data released by the Central Statistical Office (KSH) on Tuesday show.
Food prices dropped 1.4% and fell 4.8% excluding the price of eating out. Fresh fruit prices dropped 15.6%, pork prices fell 12.9%, fresh vegetable prices were down 7.5% but cooking oil prices rose 5.3%.
Household energy prices fell 4.3% as piped gas prices slipped 10.9% but electricity prices increased 1.4%. Consumer durable prices rose 1.5%. Motor fuel prices rose 1.3%.
Prices of spirits and tobacco products increased 3.2% and clothing prices inched down 0.2%. Service prices were up 5.0%.
CPI adjusted for better comparison with other European Union member states was 1.8%. Core inflation, which excludes volatile fuel and food prices, was 2.0%.
The CPI calculated with a basket of goods and services used by pensioners was 0.9%.
In a month-on-month comparison, consumer prices edged up 0.2%. Food prices, excluding the price of eating out, fell 0.5%. Service prices rose 0.8%, household energy prices were flat and motor fuel prices climbed 0.6%.
In a comment, Erste Bank analyst János Nagy said headline inflation was in line with expectations. He added that average annual inflation could be lower than the forecast in the latest Inflation Report of the National Bank of Hungary, released in June, leaving room for further easing at rate-setters' next policy meeting. ING Bank chief economist Péter Virovácz said that services inflation could remain strong in coming months due to seasonal effects, wage pressure and rising energy prices. He augured a slow rise in CPI to over 2% by December and put average annual inflation at 1.7-1.8%.
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