Actual (Aug): -0.1 % m/m, 3.6 % y/y
Consensus: 3.3 % y/y
Previous (Jul): -0.3 % m/m, 3.1 % y/y
Consumer inflation accelerated in August. One of the reasons behind is a decreasing base. Food prices went down month-on-month thanks to a seasonal decrease in prices of fruit and vegetables. But the price reduction was probably not as big as last year and food actually drove the price index higher year-on-year. Other important drivers were motor fuels and energies for households. Core inflation eased slightly to 3.1 pct.
The latest inflation report is unlikely to change the MNB´s policy. Real sector is weakening and the slowing Eurozone weighs on economic outlook. On the other hand, turmoil on financial markets keeps the bankers alert as Hungarian assets might get under pressure. The interest rates are, therefore, seen to remain stable.