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National Bank of Hungary predicts inflation will drop to 3.0% in Q2 of next year

The National Bank of Hungary (MNB) predicts that Hungary's inflation rate will rise from 3.8% in the third quarter of 2010 to 4.1% in the fourth quarter of the year before dropping to 3.4% in the first quarter of 2011 and 3.0% in the second quarter of next year, the MNB announced in its inflation report.

The MNB forecast annual inflation of 4.9% in 2010, 3.0% in 2011 and 2.9% in 2012. The MNB forecast annual inflation of 4.4% in 2010 and 2.3% in 2011 in its previous inflation report published in February.

The MNB attributed the rise to an increase in energy prices stemming from a weakening of the euro.

The MNB predicted that that Hungary's GDP would increase 0.9% in 2010, 3.2% in 2011 and 3.9% in 2012. The MNB previously forecast contraction of 0.2% in 2010. (MTI – Econews)