In November 2020, annual inflation stood at 2.7% and core inflation at 3.9%. Core inflation adjusted for the effects of indirect taxes, was 3.3%. Inflation fell by 0.3 percentage points relative to the previous month, primarily reflecting a decline in fuel and regulated product prices.
The National Bank of Hungary (MNB) says its measures of underlying inflation developments capturing persistent inflationary trends, i.e. the price index for demand-sensitive products and the inflation of sticky-price products and services, rose slightly overall relative to the previous month.
In November 2020, items with greater sensitivity to cost changes, and the contribution of regulated products had a downward effect on inflation.
Pricing decisions have shown higher volatility and an unusual seasonal pattern following the outbreak of the coronavirus. After the higher repricings in the summer months, disinflationary effects strengthened from September. In line with this, the autumn months were generally characterized by a weaker price growth.
Annual inflation of industrial goods remained broadly unchanged in November. Within the product group, durables price index slightly fell relative to the previous month, and non-durables price index rose slightly.
Services prices rose by 0.2% compared to the previous month. A higher monthly price growth, unseen in the average of recent years, was mainly due to a rise in the prices of mobile phones, Internet charges and insurance fees.
The inflation of food decreased relative to the previous month. Within the product group, a fall in the inflation of pork and poultry meet and a decline in the inflation of fresh fruits reduced the unprocessed food price index.
Changes in the prices of processed meat products, milk and dairy products had a major downward effect on the inflation of processed food.
Prices of regulated goods fell by 1.2% relative to October, which was attributable to the effect of the free parking system implemented again, due to the coronavirus pandemic.
Fuel prices fell as the world market price of oil declined relative to the previous month. The indicators, measuring households’ inflation expectations, are characterized by unusually high volatility, similarly to the consumer price index. The indicator slightly decreased in November compared to earlier months.
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