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HUNGARY CPI 3.1% IN FEB, JUST OVER NBH TARGET

 

Consumer prices in Hungary rose by an annual 3.1% in February, over the National Bank of Hungary’s 3.0% mid-term target for price stability, data from the Central Statistical Office (KSH) showed. CPI accelerated from 2.7% in January. It stood also at 2.7% in December, slowing from 3.1% in November. CPI harmonised for better comparison with other EU member states was 3.2%. Core inflation, which excludes volatile food and fuel prices, was 3.5%. CPI calculated with a basket of goods and services used by pensioners stood at 3.2%. In a monthly analysis released after the publication of the KSH data, the National Bank of Hungary (NBH) attributed the rise in core inflation mainly to price rises of processed foods and industrial goods, with price rises of fresh foods and vehicle fuels also playing a part. The NBH acknowledged that all three of its measures of underlying inflation rose. The indicator for core inflation excluding the effects of indirect taxes stood at 3.2% in February, rising from 3.0% in the previous month. The NBH’s rate-setting Monetary Council has said recently it is paying “even more attention than usual” to developments in the measures of underlying inflation capturing persistent inflationary trends, making the indicators, especially the core inflation excluding indirect tax effects one, a bellwether for a shift in monetary policy.