BUDAPEST, Sept. 10 (Xinhua) -- Hungarian consumer prices were 3.4 percent higher on average in August 2024 than a year earlier, according to data published by the Hungarian Central Statistical Office (KSH) on Tuesday.

The figure is much lower than the 4.1 percent recorded in July, and lower than the prediction of analysts, who forecast a rate of 3.7 percent for August.

On an annual basis, food prices were up by 2.4 percent. Motor fuel prices decreased by 2.9 percent, while services rose sharply by 9.5 percent.

"The largest contribution to the decrease in the year-on-year consumer price index came from the slowdown in fuel price dynamics, accounting for 0.5 percentage points, which primarily resulted from base effects," the Hungarian National Bank (MNB) announced after the KSH data published its latest data.

"As expected, inflation slowed in Hungary in August. The fresh data was a downside surprise compared to market consensus," ING bank analyst Peter Virovacz told online business portal Portfolio.

"From the perspective of Hungarian monetary policy, the incoming inflation data paves the way for a 25 basis point reduction in the key interest rate in September," he added.

The base interest rate is currently at 6.75 percent. The Monetary Council of the central bank will have its next rate-setting session on Sept. 24. Enditem

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