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9th September, 2021

Inflation accelerates to 4.9% in August

Inflation stood at 4.9% year-on-year in August, up from 4.6% in July, the Central Statistics Office announced on Wednesday.

Among the largest increases, the price of cooking oil soared by 30.6%, the price of catering at workplaces rose by 9.2%, poultry was 8.9% more costly than a year ago and the price of flour went up by 8.2%.

Fuel prices alone have expanded by 21.7%.

Core inflation – which excludes energy and seasonal foods – reached 3.6% year-on-year in August, up from 3.5% in July, and was up by 0.3% from the previous month.

Over the first eight months, the average inflation was 4.3% year-on-year.

The August inflation figure was above the average forecast of 4.7%, Portfolio notes.

The data may strengthen the determination of monetary policy makers to continue tightening, the website adds. (ksh.hu; portfolio.hu; 24.hu; novekedes.hu; nepszava.hu; napi.hu)
9th September, 2021

Pensioners question inflation data

Elderly persons were surprised by the official pensioners inflation figures released on Wednesday, and they have serious doubts that the figure is only 3.9% year-on-year for the first eight months, the Pensioners’ Parliament announced.

In calculating pensioners inflation, food, medicine and housing-related expenses have a 62% weight in the overall basket, compared to 47% in the standard figure.

The pensioners organisation complains that the Central Statistics Office’s method of calculating pensioners inflation does not include additional expense items that have emerged due to the epidemic that particularly affect the elderly, such as disinfectants, immune-boosting products and services essential for maintaining social contacts.

The Pensioners’ Parliament asks the government to use its authorisation given by the law to impose an additional pension hike retroactively to January 1, calculating with the 4.3% average inflation figure for the first eight months, not the 3.9% pensioners inflation. (napi.hu)
9th September, 2021

Surprising trade deficit in July

Hungary recorded a trade deficit of €193 million in July, down from a €186 million surplus a year earlier, the Central Statistics Office announced as it released its first estimate on Wednesday.

The last time Hungary produced a trade deficit was in April 2020, a result of the shock of the pandemic, Portfolio points out.

Compared to June, exports fell by 9.5% to €9.5 billion, while imports decreased by 1.8% to €9.7 billion.

The slowdown in exports in July from June may have been due to a decline in vehicle production, as has appeared in industrial output figures, the Statistics Office said.

Compared to a year earlier, exports increased by 5.4% and imports were up 8.5%.

The trade surplus for January-July was €3.5 billion, up from €2.3 billion a year earlier.

The final figures for July will be announced on October 1.

Import growth rates exceeded export growth rates for the third month, Portfolio observes.

It says the present decline in the trade balance is due to several factors, such as the stoppages, mostly in the automotive industry, caused by global supply problems, as well as demand problems for exports due to the uncertainty, and the overheated Hungarian economy, which boosts imports of fixed capital goods. (ksh.hu; portfolio.hu; napi.hu; hvg.hu)

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