Household energy prices dropped a sharp 14.1% in a year-on-year comparison, falling on the back of government-mandated utility price cuts.

Lower prices for clothing also had a dampening effect. No prolonged price drop are seen in other areas, and it would be mistaken to speak of deflation according to the classical definition, KSH statistician Borbála Mináry said.

Seasonally adjusted core inflation, which excludes volatile fuel and food prices, was an annual 1.5% in October.

Erste Bank analyst Gergely Gabler said the data showed no danger of deflation because the decline in prices had not been the result mainly of fundamentals but of the government’s utility price cuts.

Bálint Török of Buda-Cash Brókerház, noting low global inflation, said inflation could remain low for a good while.

Source www.hungarymatters.hu

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