MNB: due to food prices, inflation accelerated to a brutal extent

By: Trademagazin Date: 2022. 10. 11. 13:54

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More than half of September’s inflation is explained by the rise in prices of food and regulated price products and services. The monthly increase in core inflation, calculated without processed food, moderated after the August repricing, which means that inflationary processes are slowing down in this product group, the Magyar Nemzeti Bank (MNB) pointed out on Tuesday in its analysis of the latest data.

Food inflation rose to 38.6 percent

The comprehensive inflation index rose by 4.5 percentage points compared to the annual index in August, the annual core inflation was 20.7 percent, which is 1.7 percentage points higher than the previous month. About 85 percent of the 4.5 percentage point rise in inflation in September is due to two product groups: regulated prices contributed 2.8 percentage points and food products contributed 1.0 percentage points to the acceleration of the consumer price index.

The prices of regulated price products and services rose by 22.4 percent compared to August, so the annual price change of the product range is 24.2 percent. The major part of the significant increase is related to the modification of residential utility prices (gas and electricity prices), but at the same time, textbooks, school, kindergarten, daycare meals, and parking fees also became more expensive.

Food inflation rose to 38.6 percent, compared to August, food prices increased by 3.8 percent. In the case of unprocessed food, the price increase was widespread, which could partly be explained by the drought that hit Europe. Among processed foods, the increase in prices was primarily related to price changes in milk, dairy products and bread, the MNB stated.

MNB