Hungary October inflation rises from food and base effects

Hungary's October inflation rose to 0.1%, from September's -0.4%. Increase in food inflation to 1.5% yoy from  last month's 0.4%, from base effects unseasonal monthly declines in food prices in last October.

Household utility prices increase to 0.6% yoy from -0.9% last month as government made cut mandatory last year, which is final in that series.

Hungary's headline is dragged by lower energy prices with falling fuel and lubricant prices dropping by -16.5% yoy. Core inflationrose modestly to 1.5%. Alcohol and tobacco rose with health, communication, restaurents and hotels climbed up pushing core inflation up.

"For the most part, the increase in headline and core inflation does not change the general commentary. Inflation at 0.1% y/y is far below the 3% (2-4%) target. Base effects imply further increases in inflation during the next few months", says Barclays in a research note.