Hungarian central bank expects CPI to rise

Analysis

Although Hungary’s core inflation figure – the Consumer Prices Index (CPI) – has been falling for a number of months, it is expected to start going up moderately for the rest of the year, chiefly due to rising wages and growing consumption, Judit Várhegyi, official of the National Bank of Hungary (MNB), said yesterday.

Hungary’s CPI continued dropping in August, following the recent trend, a first release of data published yesterday by the Central Statistical Office (KSH) reveals. CPI was 0.1% lower on average in August compared to the same month a year earlier, while dropping by 0.4% on average compared to the previous month. 

The official noted that real wages have risen considerably in the past few months, which she expects has boosted consumption. She added that the MNB’s measures of underlying inflation continue to indicate a moderate inflation environment. The MNB’s prediction of rising CPI is in line with most analysts’ predictions.

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