KSH: changes in the calculation of core inflation

Taking into account European best practices, the Central Statistical Office (KSH) will change the range of products and services used to calculate core inflation from April: in the future, changes in the prices of alcoholic beverages and tobacco will no longer be taken into account to determine the indicator, MTI informed MTI on Tuesday.

Following the change, core inflation will cover 63 percent of the total consumer price index instead of the previous 73 percent.

In recent years, the prices of alcoholic beverages and tobacco products have been significantly affected by the regular, several-year changes in the excise tax rate required by EU legislation, so the KSH decided to change the calculation of the core inflation rate based on the practice of European institutions – according to the announcement of Quittner Péter, the head of the Consumer Prices Department of KSH. (MTI)