Hungary's Feb CPI slows slightly to 25.4% y/y, meets forecast -stats

BUDAPEST (Reuters) - Hungarian headline inflation slowed slightly to an annual 25.4% in February from 25.7% in January, in line with analyts' projection, the Central Statistics Office (KSH) said on Wednesday.

Core inflation, calculated with a revised methodology, slowed to 25.2% in February from 25.4% in January, also meeting a 25.2% forecast in a Reuters survey. Prices increased by 0.8% from the previous month, the KSH said.

The KSH said the prices of electricity, gas and other fuels, and food prices jumped the most in annual terms.

Average inflation for 2022 was 14.5%.

As of April 2021, the KSH no longer includes alcohol and tobacco prices in its core inflation figure. The National Bank of Hungary targets 3% headline inflation with a tolerance band of a percentage point on either side.

Food prices rose by 43.3% year-on-year, household energy prices jumped by 49% after the government curtailed utility bill subsidies last year. Consumer durables prices increased by 12.6%, with prices of new cars jumping 23.9%, while services prices rose by 11.6% in annual terms.

INFLATION (% change) Feb 2023 Jan 2023 Feb 2022

Headline CPI m/m 0.8 2.3 1.1

Headline CPI y/y 25.4 25.7 8.3

Core CPI y/y 25.2 25.4 8.1

(Reporting by Krisztina Than)