Hungarian inflation continues acceleration in January

Hungarian inflation continues acceleration in January
By bne IntelliNews February 14, 2017

Hungary’s CPI increased by 2.3% in January from 1.8% the previous month, data from statistics office KSH showed on February 14. The rise was largely in line with market expectations.

CPI swung back to positive territory in September following four months of deflation in a row. The acceleration of the headline inflation rate seen in the final three months of 2016 is expected to continue this year. The revival of the CPI reading, however, is not likely to prompt a swift change to the Magyar Nemzeti Bank's (MNB) dovish stance.

In parallel with the stabilisation on global oil markets, a 15.2% y/y increase in fuel prices was the main driver of the rise in January. Price increases for pharmaceutical products, household products and recreational goods also contributed. 

On a monthly basis, CPI rose 0.4%. At the same time, the core inflation index - which omits erratic prices including global commodities – decelerated to 1.6% from 1.7% the previous month. This suggests that the inflationary pressure remains mild within the economy in spite of fast-paced (7.5%) net real wage growth seen in the first eleven months of 2016.  

In spite of the steady rise of CPI, the continued dovish stance of Hungarian rate setters at their January 24 meeting suggests that the MNB will maintain its ultra-easy policy and Hungary will probably be one of the last in the region to start tightening under reflation pressure. The central bank pointed out that Hungarian inflation expectations remain historically low, and CPI is expected to reach the 3% target only in the first half of 2018. 

Data

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss