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Analysts see July CPI slowing to 3.8%

Analysts polled by business daily Napi Gazdaság estimate consumer prices rose 3.8% in July from the same month a year earlier, slowing from 5.3% in June as the effect of a 5-percentage-point VAT increase fell out of the base period, the paper reported on Monday.

The Central Statistical Office (KSH) will publish July CPI on Wednesday.

Food prices present the biggest risk to CPI right now, OTP Bank analyst Győző Eppich told the paper. Flooding in Hungary has pushed up the price of seasonal food, and a smaller global wheat harvest will also put pressure on prices, he explained.

Gergely Suppan of Takarekbank said that higher food prices could easily keep next year's inflation over 3%. (MTI-Econews)