ADVERTISEMENT

Analysts blame tax rises, higher energy prices for jump in inflation

Figures

Analysts polled by MTI on Wednesday blamed the higher-than-expected rise in consumer prices in September on tax increases made as part of the government's austerity program. Consumer prices increased 5.9% year-on-year in September and were up 2.5% compared to August, the Central Statistics Office (KSH) said early on Wednesday. Raiffeisen Bank's Zoltán Török said increases in centrally-regulated energy prices, the rise in the middle VAT rate from 15% to 20%, and higher excise taxes were the reason for the big jump in inflation. In light of the high September CPI, Török said the central bank would raise rates 50 basis point at its next meeting on October 24. Inter Európa Bank's Csaba Hegedűs said some traders raised prices immediately after, or even before, the VAT rise, which took effect on September 1. He projected a 25 basis point rate rise at the next central bank rate-setting meeting. Both analysts said twelve-month year-end inflation could exceed 6% and put annual average inflation around 4%. CIB Bank's Mariann Trippon also blamed higher prices in September on tax increases which were part of the government's austerity program. She said the National Bank of Hungary would raise rates 25 basis point at their next meeting. (Mti-Eco)

ADVERTISEMENT

Impact of economic recovery on commercial property sector mu... Analysis

Impact of economic recovery on commercial property sector mu...

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

Budapest airport shuttle bus service expanded City

Budapest airport shuttle bus service expanded

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.