BUDAPEST, Oct. 7 (Xinhua) -- Hungary's consumer price index (CPI) rose by 1.6 percent year-on-year in September, accelerating from 1.3 percent in August, according to data released Wednesday by the Hungarian Central Statistical Office (KSH).
Food prices fell by 1.3 percent year-on-year, or 4.6 percent excluding food and beverage-serving services. Meanwhile, prices of electricity, gas and other fuels declined by 4 percent, the data showed.
Service prices remained a major source of upward pressure, rising by 4.9 percent year-on-year. Prices of alcoholic beverages and tobacco products increased by 3.3 percent, while consumer durable prices rose by 1.2 percent. Motor fuels increased by 6.9 percent.
Core inflation, which excludes volatile items such as food and energy, eased slightly to 1.9 percent year-on-year in September, according to the data.
Janos Nagy, macroeconomic analyst at Erste Bank, said the headline inflation figure was below both the bank's forecast and market consensus, while the slowdown in core inflation was a particularly favorable development.
However, he warned that the inflation outlook could become less favorable, as higher energy prices are already feeding into domestic producer prices and could gradually reach consumers. Rising global food prices and developments in the exchange rate of the Hungarian forint could also influence future price pressures, he said.
Erste Bank expects Hungary's average inflation rate to stand at 1.8 percent in 2026, before rising to 3.0 percent in 2027. ■