Hungary’s CPI rose to 0.2 percent y-o-y in August, up from a mere 0.1 percent in July, in what portfolio.hu is a confirmation of economists’ expectations. On a month to month basis, however, the consumer price index fell 0.2 percent with core inflation receding to 2.5 percent. Portfolio.hu quotes Nora Szentivanyi of J.P. Morgan as writing that “the inflation rise owed to base effects from the government-mandated utility price cuts last year and a smaller decline in food prices than a year ago.”
“Robust activity data (2Q GDP growth, July IP and exports) should make the NBH increasingly confident that the output gap is gradually closing and risks of a persistent inflation undershoot are low. The ECB’s recent rate cut and stimulus measures help to offset risks stemming from Russia/Ukraine crisis and should enable the NBH to stick to its guidance of stable policy rates for extended period.”
