Twelve-month consumer price inflation was 5.1pc in July after 3.7pc in June as Hungary’s main VAT rate rose from 20pc to 25pc from July 1, the Central Statistical Office (KSH) said on Tuesday.
Consumer prices rose 1.3pc in July from June following a monthly rise of just 0.1pc in the previous month.
Twelve-month inflation was down from analysts’ average forecast of 6.1pc.
The effect of the rate hike in VAT and excise taxes is shown by the fact that discounting the tax changes consumer prices were 2.1pc down from the preceding month and would have risen just 1.4pc from July 2008. In June, tax-cleared prices remained flat from the preceding month and the twelve-month figure was the same 3.7pc as the unadjusted headline inflation.
Seasonally adjusted core inflation of 2.3pc month-on-month and 5.2pc yr/yr in July accelerated from 0.4pc and 3.2pc, respectively.