Analysts put year-end CPI at 4.1-4.2%

Food

Analysts put year-end twelve-month inflation this year at 4.1-4.2% after October CPI came in at a higher than expected 3.9% in a statistical release on Friday.

The headline figure published by the Central Statistics Office (KSH) was over the 3.6% consensus by analysts.

Gergely Suppan, chief analyst for Takarékbank, said that while weak domestic demand and a high base for food prices would cause inflation to slow in the coming months, the elimination of gas price subsidies, a tax on unhealthy foods and an excise tax hike would push prices up. He put year-on-year inflation in December at 4.1% and average annual inflation at 3.9%.

CIB Bank’s György Barta noted that the slight 0.2% month-on-month rise in the price of consumer durables and the 0.2% drop in service prices in October show weak domestic demand, but he still saw twelve-month inflation rising to 4.2% in December, bringing annual average inflation to 4.0%.

Both analysts said inflation gave the central bank no reason to raise rates, but added that growing market turbulence or a sharply weaker forint could cause rate-setters to rethink a tightening of monetary policy.

The National Bank of Hungary’s Monetary Council left the base rate on hold for the ninth month in a row at a meeting in October.

ADVERTISEMENT

17% of homeowners plan renovations this year Analysis

17% of homeowners plan renovations this year

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

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.