Hungary’s inflation decelerated to a 15-month low in September due to a notable fall in fuel prices, official data revealed on Tuesday.
Consumer prices climbed 12.2 percent year-on-year in September, the Hungarian Central Statistical Office said. Inflation was forecast to ease to 12.5 percent from 16.4 percent in August.
The rate was the weakest since June 2022, when inflation stood at 11.7 percent. Nonetheless, inflation continued to remain well above central bank’s target of 2-4 percent.
Core inflation weakened to 13.1 percent from 15.2 percent a month ago. The rate was also below economists’ forecast of 13.6 percent.
Food prices rose at a slower pace of 15.2 percent after rising 19.5 percent in August. At the same time, fuel and power prices slid 14.6 percent, in contrast to the 34.7 percent increase a month ago.
On a monthly comparison, inflation eased to 0.4 percent from 0.7 percent in August. At the September meeting, the central bank had kept the base rate unchanged at 13.00 percent.
ING Economists said the central bank is likely to cut the interest rate by 25 basis points in October, as incoming inflation data supports a more aggressive move, financial market volatility has increased, and caution is particularly warranted given rising risk aversion.