KSH statistician Borbála Minary said the change in fuel prices is the main factor behind the inflation data. In a year-on-year comparison food prices were up 1.8 percent in April and the price of alcohol and tobacco products rose by 2.9 percent.

Household energy prices were up 0.6 percent and prices in the category that includes vehicle fuel increased by 5 percent. Vehicle fuel prices alone were up an annual 10.7 percent. In a monthly comparison food prices increased by 0.6 percent and the price of alcohol and tobacco products also rose by 0.6 percent.

The price of other goods edged down 0.5 percent of which fuel prices fell 1.4 percent. Seasonally adjusted core inflation, which excludes volatile fuel and food prices, was an annual 1.9 percent and 0.3 percent month on month in April.

In January-April, consumer prices were up 2.5pc from the same period a year earlier. ING Bank chief analyst Péter Virovácz said headline CPI could decelerate in coming months on base effects even as core inflation picks up. Inflation in April was boosted by a rise in food, alcohol and tobacco prices, but durable goods prices held it back.

Erste Bank chief analyst Gergely Urmossy said inflation in Q2 could be below the National Bank of Hungary’s prediction giving another reason for the Monetary Council to keep the base rate low.

Urmossy noted that core inflation is rising, but with low imported inflation effects from the EU, a rise in Hungarian inflation may also be delayed.

Republished with permission of Hungary Matters, MTI’s daily newsletter.