Hungarian consumer prices decrease by 0.2 pct in 2014

Hungary's consumer prices decreased by 0.2 percent in 2014 compared to 2013, according to data released by the country's central statistical office on Wednesday.

In 2014, the price decrease of electricity, gas, and other fuels was the highest, reaching 11.7 percent. The price of clothing and footwear dropped by 0.7 percent, while the price of consumer durable goods and other goods dropped by 0.5 percent. Food prices went down by 0.4 percent. However, consumers had to pay 6.2 percent more for alcoholic beverages and tobacco, and 1.8 percent more for services compared to the previous year.

The ministry for national economy said in a statement the annual inflation for 2014 fell in line with ministry projections. The year 2014 was characterized by subdued price dynamics, due especially to the low inflationary environment in Europe, falling food prices resulting from a rich harvest, and public utility price cuts, it said.

The government's economic policy has been unequivocally successful in combating inflation: between 2003 and 2010 the inflation rate averaged 5.3 percent per year, while in 2011 and 2014 it was only 2.8 percent, the ministry said. Endit