Analysts forecast negative CPI for coming months
After many were surprised by the 0.2% year-on-year drop in Hungary’s consumer price index, analysts are now saying that the rate of inflation is expected to remain in negative territory for the coming months, but it is likely to be positive by yearʼs end, according to a report in Hungarian economic daily Világgazdaság.
Monthly consumer price index. Corresponding period of previous year equals 100. (Source: Central Statistical Office)
Gergely Suppan, an analyst at Takarékbank, reportedly said the unexpectedly low price increase of food and services was the most surprising element of the new data. He said that for the next few months the rate is expected to remain in the negative, and bounce back to around +2% this fall, possibly reaching +2.1% by the end of the year. He added that the anticipated +3% target may not be reached by 2018.
Gergely Ürmössy, leading macro analyst at Erste, told the portal that the rate should return to positive in August. He added that he expects CPI to increase by 0.6% on average this year, while the average increase next year could reach 2%.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.