MNB Says Inflation Slowdown Driven by Drop in Regulated Prices

MNB

Photo by Jessica Fejos

The National Bank of Hungary (MNB) said the prices of regulated products and services, which fell on the base effect of an increase of household gas and electricity prices, contributed 2.6 percentage points to the 4.2 pp drop in headline the Consumer Price Index.

Processed food prices accounted for 0.7 pp of the decline, according to a monthly analysis released after the publication of the recent inflation data from the Central Statistical Office.

Within core inflation, disinflation was "widespread," it added. Inflation is slowing on the effects of tight monetary policy, government policies to spur competition, subdued demand, and a "significantly lower" external cost environment, the MNB argued.

Its measure of core inflation, excluding indirect tax effects, a bellwether indicator of underlying inflation, fell to 13.1% in September from 15.2% in the previous month.

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