Varga said recent events show that a “cautious and patient” monetary policy is still warranted. He added that a global return to “price stability” was unlikely in the near future, pointing to the impact of conflicts on commodities prices.
Crises are weighing on global economic growth, and the European Union is a big loser in this respect, he said, adding that the resilience of financial markets is still “good news”.
Varga said the disinflationary effect of the strengthening forint is passing through to producer prices, adding that a stable FX market remains an important factor in managing inflation.
He said companies had adjusted prices to exchange rate changes at a faster pace and to a greater degree since 2020.
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