ADVERTISEMENT

MNB inflation indicators slightly up in June

Food

In its monthly assessment, the National Bank of Hungary (MNB) said its measures of underlying inflation rose slightly in June compared to the previous month but remained in the 2-2.5% range, national news agency MTI reported Tuesday.

As reported earlier in the day, annual inflation was 3.1% in June 2018, a 0.3 percentage-point increase on the previous month.

Core inflation stood unchanged at 2.4%, while core inflation adjusted for the effects of indirect taxes was up 0.1 of a percentage point to 2.3%.

According to the projection in the MNBʼs June Inflation Report, inflation has temporarily risen slightly above 3% driven by the sharp increase in oil prices. Nevertheless, it added, the 3% inflation target will be achieved in a sustainable manner by mid-2019.

The MNBʼs indicator for demand-sensitive inflation, which excludes processed foods from core inflation, rose from 2.0% to 2.1%.

The indicator for sticky price inflation, which includes items for which retail prices vary, on average, by no more than 15% a month, rose from 2.2% to 2.4%.

Householdsʼ inflation expectations "remained at moderate levels" during the month, the central bank said.

Analysts see summer rise in CPI

Cited by MTI, Péter Virovácz, lead analyst at ING Bank, said inflation could rise higher than 3% over the summer, as the MNB expects. The weakening of the forint and higher oil prices pose a risk, he added, although inflation could still average 2.8% for the entire year.

Gergely Suppan of TakarékBank said inflation could be around 2.7% for the year, as the tempo of price rises decelerates by December. Inflation could fluctuate around 3% next year and average 2.8% for the year as a whole, he added.

K&H Bank chief analyst Dávid Németh noted how fuels and tobacco products had pushed inflation higher in June, adding that without these products inflation would have been unchanged from the 2.8% rate recorded in May. He predicted that CPI could be above 3% for the rest of the year and reach 3.3-3.4% by December, but concurred that it should still average 2.8% for the year as a whole.

ADVERTISEMENT

MKIK: Local business tax should be maintained Analysis

MKIK: Local business tax should be maintained

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

Capital sees urban exodus during pandemic City

Capital sees urban exodus during pandemic

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.