MNB: food and manufactured goods curbed inflation in June

By: Trademagazin Date: 2023. 07. 07. 13:49

In June, the slowdown in inflation continued for the fifth month. Compared to the previous month, inflation slowed by 1.4 percentage points to 20.1 percent; the slowdown was almost entirely caused by food (0.9 percentage points) and manufactured goods (0.4 percentage points), the Magyar Nemzeti Bank (MNB) concluded on Friday, evaluating the June inflation data.

The central bank pointed out that compared to the previous month, the annual core inflation decreased by 2.0 percentage points to 20.8 percent. All main product groups contributed to the decline in core inflation.

Food inflation has been slowing for the sixth month, so it was 29.3 percent in June. Within the product range, the annual price index of both processed and unprocessed food decreased significantly. The slowdown in food inflation was primarily explained by the development of the prices of milk and milk products, as well as bread and baked goods. The MNB also noted that, compared to May, the prices of unprocessed food fell by 1.3 percent and the prices of processed food by 0.6 percent. The annual inflation of manufactured goods fell to 15.7 percent. The prices of the product group increased by 0.5 percent compared to the previous month.

The prices of non-durable industrial goods rose, which was only partially offset by the decrease in the price of durable industrial goods. The price drop of used cars contributed the most to the price drop of durable industrial goods.