ADVERTISEMENT

Analysts say monthly headline inflation decreased 0.4% in July

Food

Analysts on average said consumer prices fell 0.1% in Hungary in July, but they still projected average annual inflation to rise to 5.5% for the full year from 3.9% in 2011, a poll by the financial daily Napi Gazdaság published on Monday shows.

The Central Statistics Office (KSH) will publish July inflation data on Tuesday. In June, consumer prices rose 0.1% a month and 5.6% year-on-year, accelerating from a 5.3% increase in May.

Seasonal food prices make the estimates uncertain, analysts told the daily. Zsolt Kondrát of MKB expected continued upward pressure from food prices but he said that the exchange rate and crude oil prices could affect the index either way.

Sándor Jobbágy of CIB Bank said consumer prices could have stagnated in July and rose on the year due to the lower base. Food prices fell less than usual for the season and the price of excise products and services could have moved up.

Inflationary pressure was lessened by the exchange rate and weak domestic demand, he said. Gergely Gabler of Equilor saw, in contrast, a steep 0.5% decrease on the month, bringing twelve-month inflation down to 5.3%.

He attributed the fall mainly to fuel and food prices and also to the strengthening of the forint. The analysts expected the National Bank of Hungary to keep its key rate on hold at 7.00% despite slower inflation, saying that even the doves on the Monetary Council seem to prefer waiting with the rate reduction until an agreement on IMF/EU financial assistance was sealed.

ADVERTISEMENT

IMF raises Hungary 2021 GDP growth forecast to 7.6% Analysis

IMF raises Hungary 2021 GDP growth forecast to 7.6%

Parliament approves amendment to Competition Act Parliament

Parliament approves amendment to Competition Act

New CEO announced at Codic Hungary Appointments

New CEO announced at Codic Hungary

Budapest bike-sharing scheme boasts record ridership City

Budapest bike-sharing scheme boasts record ridership

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.