Industrial Producer Prices Increase by 6.4%

Industrial producer prices were higher by 6.4% on average in June 2023 compared to one year earlier. Domestic output prices were up by 29.8% and non-domestic output prices lessened by 5.0%. The large difference was primarily due to the domestic output prices of energy industry – producing goods basically for the domestic market, within which representing a large weight – being much higher than a year earlier, while its non-domestic output prices being already on the decrease, the Central Statistical Office (KSH) reports.

The development in industrial producer prices was influenced also by the increase in base material prices, the rise in production costs and the strengthening of the forint against the euro. Compared to the previous month, domestic output prices decreased by 2.4% and non-domestic output prices by 0.7%, so industrial producer prices as a whole lessened by 1.3%.

In June 2023 compared to June 2022:
Domestic output prices increased by 29.8% on average, within which the price rise was 5.0% in manufacturing, representing a weight of 65%, and – partly owing to amendments to the regulation of the administrative price – 87.7% in the energy industry (electricity, gas, steam and air conditioning supply), with a weight of 30%. Food industry output prices were up by 19.4%.

Prices in Hungary rose by 38.1% in energy and intermediate producer branches together, by 5.8% in capital goods producer and by 18.7% in consumer goods producer branches out of the end-use groups of the producer branches of industry.

Industrial non-domestic output prices lessened by 5.0%, within which prices were 0.3% lower in manufacturing, representing a weight of 90%, and 37.9% lower in the energy industry, with a weight of 9.8%.

In January–June 2023 compared to January–June 2022:
Domestic output prices were 45.6% and non-domestic output prices 7.0% higher, so industrial producer prices as a whole went up by 19.6%.