HU CPI: 17.6% in July, in line with the consensus

July CPI: faster disinflation, with low m/m index
 Y/Y: 17.6% (Bloomberg consensus: 17.7%, previous: 20.1%)
 M/M: 0.3% (Bloomberg consensus: 0.1%, previous: 0.3% )
CPI index (y/y) dropped below 20% for the first time after 10 months. Base effect has been on the rise, but
m/m reprcing was also moderate (+0.3%). Food prices once again showed deflation, -0.9% m/m in July after -
0.4% in June. A total of three main categories were in deflation (clothes and durable goods too), while
household energy’s half-a-year deflation has broken (+1.1%). (The latter is still the result of the changing
proportion of consumers below and above the average consumption).
The more than 2pps drop of the headline y/y index was even outpaced by the drop of core inflation (more
than 3pps). This pushed down the core index below the headline, for the first time after four months.
Services prices still represent an upside inflation factor, with a July m/m rate well above the average (1.7%).
This is even above the m/m average of H1 this year. Looking at the past one year, household energy and food
prices continued to rise the most. The headline y/y index is down by 8.1pps from the January peak.