Hungarian Producer Prices Maintain their Inflationary Dynamic

Despite the very rapid slowdown in the Hungarian economy, producer prices continue to head stubbornly upwards Industrial domestic prices were up by 0.3% in September over August and were 12.8% higher than in September 2007. Export producer (as measured in HUF) increased by 1.9% on August and decreased by 1.3% compared to September 2007. Combined domestic and export producer prices were up 1.2% on the month and 4.7% year on year.





In September 2008 the highest monthly price increase was in the manufacture of leather and leather products (1.3%), due to a monthly price hike of 3.1% in the manufacture of footwear. There was a 1.2% monthly price rise in the manufacture of chemicals, chemical products and man-made fibres, which were affected by a further price rise of basic chemicals. The manufacture of refined petroleum products prices were up by 0.9% on a monthly basis.

Price decreases took place in the food industry, the textile industry, in the manufacture of machinery and equipment (0.4%), in wood and wood products (0.3%) and fabricated metal products (0.2%).

In other sectors price increases ranged between 0.1% and 0.8%. The prices of electricity, gas and wate supply, which have a considerable influence on domestic sales prices, rose by 0.3% in September, the same rate as in August, largely due to price increases in the production and distribution of electricity (by 0.7%).

Compared to September 2007, the highest domestic sales price increases in manufacturing industry was in the manufacture of refined petroleum products (31.9%). The price of manufacturing fabricated metal products rose by 12.5%, while prices of manufacturing chemicals, chemical products and man made fibres were up by 10.4%.

Prices were down in the manufacture of textiles and textile products (2.5%) and in the manufacture of wood and wood products (0.8%). The prices of electricity, gas and water supply were up by 19.2% year on year.