Hungary Producer Prices May 2008

The rate of increase in Hungarian producer prices slowed slightly in May. Prices were down 1.1% month on month, as compared with a 0.1% fall in April, according to data from the Central Statistics Office (KSH) this morning. Year on year the PPI fell back from a 6.5% rate in April to a 4.9% one. We are clearly seeing some impact of the recent rise in the value of the forint here. The HUF hit an all time high of 235 to the euro on Wednesday, and has risen 2.1 percent so far this month, ranking it as the third-best performer in emerging markets.




Domestic producer price inflation was down 0.1% at 11.7% year on year (as compared with 11.8% year on year in April 7.8% in May 2007) and in monthly terms it was up by 0.3%, whilch was still down from the 1.0% rise in April.

Producer prices in the manufacturing industry dropped by 1.4% on the month (versus -0.3% in April) and were up 3.1% year on year (as compared with 5.1% in April 2007).


Export sales prices were down by 0.1% year on year, which compares with 2.6% rise in April (5.5% drop in May 2007). In monthly terms the KSH reported a 2.2% decline, following an 1.0% drop in April (there was a 0.4% rise in May 07).

In May, food price inflation was up by 0.6% on the month (versus 0.4% in April), and by 14.7% year on year (up from 14.1% in April). On the domestic front food price inflation also accelerated to 0.8% month on month from 0.4% in April and to 13.7% year on year from 12.9% in April.