MNB: the decline in food inflation accelerated in September

By: Trademagazin Date: 2023. 10. 10. 14:11

In September 2023, the decrease in domestic inflation continued at a faster rate than in previous months, the Magyar Nemzeti Bank (MNB) stated in its Tuesday quick analysis of the latest inflation data.

The slowdown in inflation is still widely felt, which is caused by the combined effect of the strict monetary policy, the government’s steps to strengthen competition, the subdued demand environment and the external cost environment, which is substantially lower than last year – the central bank’s analysis concluded.

Inflation slowed by 4.2 percentage points compared to the previous month. Products and services with regulated prices (-2.6 percentage points) and processed foods (-0.7 percentage points) contributed the most to the slowdown.

Core inflation on an annual basis decreased by 2.1 percentage points, within which disinflation was general. The indicators calculated on an annual basis, which capture more permanent inflationary trends, also moderated. The inflation of products with rarely changing prices decreased by 1.8 percentage points, and the annual price increase of core inflation calculated without processed food by 1.4 percentage points compared to the previous month, the MNB pointed out.