The CPI harmonised for better comparison with other European Union member states was 2.7pc year-on-year in August. Core inflation, which excludes volatile fuel and food prices, was an annual 2.8 percent, according to seasonally adjusted calculations.

The CPI calculated with a basket of goods and services used by pensioners was 2.6 percent. In January-August inflation was 2.4 percent compared to the same period last year.

Analysts Péter Virovácz of ING Bank mainly attributed the August acceleration of inflation to base effects. He said CPI could pick up further in September on higher energy prices but will probably slow down again in the remaining months of the year.

Gergely Urmossy of Erste Bank forecast annual average inflation of 2.4 percent in 2017 and 3.4 percent in 2018. Gergely Suppán of Takarékbank also predicted 2.4 percent annual average inflation for this year.

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