Consumer prices were lower by 1.4 percent in January 2015, compared to the corresponding period of the previous year, and thus the decrease of prices accelerated.

The latest data show deceleration for the fifth consecutive month. Along with families, pensioners benefit to the largest extent from low inflation, as the purchasing power of pension benefits and wages increase.

Price stability helps preserve the value of incomes, wages and pensions, while higher incomes in real terms contribute to consumption and savings growth. These factors, in turn, boost economic expansion.

The slump in fuel prices has been the largest factor among causes that have driven inflation lower, and it has resulted in negative inflation in the entire EU.

Core inflation -- which excludes changes in food and energy prices -- also declined, showing modest price dynamics with an inflation rate of 0.7 percent. Positive core inflation indicates that there is no deflation risk in Hungary.

Thanks to the deflationary environment prevalent in Europe, the Government is expecting muted price increases for the entire year of 2015, while the prices of products with minimal exposure to external effects may rise.

(Ministry for National Economy)