BUDAPEST, Sept. 8 (Xinhua) -- Hungary's consumer price index (CPI) rose by 1.3 percent year-on-year in August, while prices increased by 0.2 percent from the previous month, according to data released Tuesday by the Hungarian Central Statistical Office (KSH).
Service prices remained a major source of upward pressure, rising by 5.0 percent year-on-year.
Prices of alcoholic beverages and tobacco products increased by 3.2 percent, while electricity, gas and other fuels became 4.3 percent cheaper. Consumer durable prices rose by 1.5 percent, pharmaceutical products by 3.7 percent and motor fuels by 1.3 percent.
Core inflation, which excludes volatile items such as food and energy, stood at 2.0 percent year-on-year in August, while the harmonized index of consumer prices, used for European Union comparisons, was 1.8 percent.
Hungarian economic news portal Portfolio said significant inflationary pressure was not expected in the coming months. While inflation is forecast to gradually accelerate, the annual rate could be slightly above 2 percent by the end of the year, it said.
Portfolio noted that the latest inflation data could leave room for further monetary easing by the National Bank of Hungary, whose base rate currently stands at 5.5 percent. The central bank is due to hold its next rate-setting meeting later this month. ■