Hungary Producer Price Inflation Lowest In 3 Months

Hungary’s producer price inflation eased to the lowest rate in three months in October, yet remained strong, figures from the Hungarian Central Statistical Office showed on Wednesday.

The producer price index rose 41.7 percent year-on-year in October, after a 42.7 percent growth in September.

The higher rate of increase in domestic output prices was due to the share of the energy industry, which had a significant rise in price increase, which is much larger in domestic sales than in exports, the agency said.

The growth in base material prices and weakening of the forint also led to a price-boosting effect.

Domestic market producer prices grew 67.7 percent annually in October and foreign market prices increased by 28.4 percent.

On a monthly basis, producer prices gained 3.7 percent in October.

Separate data from the statistical office showed that the trade surplus increased to EUR 2.7 billion in the third quarter from EUR 2.1 billion in the second quarter.

In the same quarter last year, the trade surplus was EUR 1.8 billion.

Exports grew 15.0 percent sequentially in the third quarter and imports rose 9.0 percent.