Experts: Deflation not a concern
Although they expect a trend of flat or falling prices to continue, experts said today that there is no need for concern of a damaging level of deflation in Hungary.
Analysts had predicted a slight growth of 0.1% inflation in April and 0.1% in May, but the Central Statistics Office announced yesterday that Hungary’s inflation rate in May was actually -0.1% as compared with a year ago.
Analysts noted several factors that kept prices down in May, including a government-mandated 6.5% decrease in gas prices, which was put in effect just before the early April elections and was included in the May statistics. Furthermore, agriculture prices were dropping worldwide, helping to keep food prices down.
Given the situation, analysts such as Zsolt Kondrát of MKB Bank, Orsolya Nyeste of Erste Bank and Dan Bucsa of London-based UniCredit all predicted inflation would be somewhere between 0% and 0.5% at years end, according to Portfolio.hu.
ADVERTISEMENT
Mapei Targets 6% Higher Revenue This Year
Parliament Negates Mandatory Membership in MOK
Magyar Suzuki to Start Dual Training Courses
Budapest Leaders Unveil Plans to Scale Back Traffic on Thoro...
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.
