Consumer Prices Rise 3.1% In February
- 10 Mar 2021 9:03 AM
- Hungary Matters
Annual inflation in Hungary was 3.1% in February, the Central Statistical Office (KSH) said. Inflation grew at a higher rate than 2.7% registered in January, with higher tobacco prices due to excise tax increases putting upward pressure on the index.
The price of tobacco products jumped by 16.5%, while spirits and tobacco increased by 9.9%.
Prices in the category of goods that includes vehicle fuel increased by 2.7%, while vehicle fuel prices were up 4.6%.
Food prices increased by 3.4% and the price of services rose by 1.7%.
Household energy prices edged up by 0.3%, consumer durable prices increased by 3.8% and clothing prices fell by 1.6%.
Adjusted for better comparison with other European Union member states, CPI stood at 3.3%.
Core inflation, which excludes volatile food and fuel prices, was 4.1%. Inflation calculated using a basket of goods and services used by pensioners was 3.2%.
In a month-on-month comparison, consumer prices rose by 0.7%.
Analysts told MTI that inflation in February matched forecasts and a further uptick was likely on the back of rising fuel prices and the higher excise tax.
Gergely Suppan of Takarékbank said he expected March inflation to push above 4%, citing the excise tax hike among other factors.
Meanwhile, fuel prices jumping from a low base would help to drive inflation to above 5% in April, he said.
ING lead analyst Péter Virovácz said that after a cramped supply side due to the third wave of the coronavirus, the struggle to meet pent-up demand once the country reopens would drive prices even higher.
Click here to read full report on Central Statistical Office's website
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