Higher food and tobacco prices lifted Hungary’s consumer price index by 3.8% year-on-year in July from 2.9% in the previous month, the Central Statistical Office (KSH) said.
Headline inflation, which was well over the National Bank of Hungary’s 3.0% mid-term “price stability” target, rose on a 7.8% increase in food prices and 6.3% higher spirits and tobacco prices. The price of tobacco products alone went up by 9.7%, because of an excise tax increase. The price of services rose by 3.4% and consumer durable prices climbed 2.7%, the biggest increase in years. Clothing prices increased by 0.7%, household energy prices inched up 0.2% and the price of goods in the category that includes vehicle fuel edged down 0.1%. Vehicle fuel prices dropped by 4.2%. Core inflation, which excludes volatile fuel and food prices, was 4.5%, and inflation calculated using a basket of goods and services used by pensioners was 4.3%.