Monthly publication of underlying measures of inflation

Following the Monetary Council’s decision, the Magyar Nemzeti Bank will publish its own measures of underlying inflation monthly from January 2013 onwards. These inflation measures, previously published only quarterly in the Bank’s Quarterly Reports on Inflation, have a key role in the monetary policy decision-making process. Monthly publication of the indices is therefore expected to enhance the transparency of decision-making. The charts constructed from the indicators will also be incorporated in the monthly Chart Pack.

Following the Monetary Council’s decision, from January 2013 onwards the Magyar Nemzeti Bank will publish its own measures of underlying inflation with a monthly frequency, at 9:30 am on the day of release of the consumer price index by the Central Statistical Office.

Underlying measures of inflation tend to be less volatile than the headline indices, with their monthly changes being a more reliable indicator of the inflation environment. The indices calculated by the MNB have so far been available for market participants only quarterly, in the Quarterly Report on Inflation data set, which has made it difficult to analyse their short-run movements. Because these indices are monitored closely by the Monetary Council, making them publicly available is expected to improve the transparency of monetary policy decision-making.

The indicators covered by the data table are the following: the consumer price index, indirect tax-adjusted core inflation, demand-sensitive inflation and the sticky price inflation index.

The data table will be accessible from the home page of the Bank’s website (www.mnb.hu) under Statistics / Statistical Data and Information / Statistical Time Series / VI Prices on the day of publication. The charts constructed from the data will also be incorporated in the monthly Chart Pack.

The Bank will publish its own measures of underlying inflation for the first time at 9:30 am on 15 January 2013.

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The primary objective of the MNB shall be to achieve and maintain price stability. (...) Without prejudice to its primary objective, the MNB shall support the maintenance of the stability of the system of financial intermediation, the enhancement of its resilience, its sustainable contribution to economic growth; furthermore, the MNB shall support the government’s economic policy and its policy related to environmental sustainability, using instruments at its disposal.