Hungarian inflation rockets to 2.9% in February

By bne IntelliNews March 8, 2017

Hungarian inflation accelerated to 2.9% y/y in February, pushing the reading above already high market expectations, statistics office KSH reported in a first release of data on March 8. 

The rise in CPI represents a four-year high, and follows a rise of 2.3% in January that also surprised by its pace. The details suggest that while global commodities prices remain in the driving seat, core inflation is also on the march. Consumers paid 19.9% more for motor fuels in February. Food prices rose 1.9%.

While consumer durables cost consumers 0.4% less, core inflation pushed to1.8% year-on-year, in a rising trend that brings it close to a two-and-a-half-year peak, estimates CIB Bank. The pickup in inflation may, therefore, reflect stronger domestic demand, the analysts add.

CPI swang back into 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, as expected, continuing early this year.

However, the pace is a surprise, and could start to impact the dovish stance of rate setters at the Magyar Nemzeti Bank (MNB) should it continue unabated and pass the central bank's 3% target. However, the monetary council has made it clear it will hold out if possible, with economic growth its priority - the economy disapponted last year with expansion limited to just 2% - while it considers inflation remains externally driven.

The MNB continues to use unconventional tools to ease monetary conditions, while it has held the benchmark at a record low 0.9% since May.

Related Articles

Ukraine's central bank cuts key policy rate to 13%

The National Bank of Ukraine (NBU) will cut its key policy rate by 1 percentage point (pp) to 13% per annum, the regulator said in a statement published on April 13. According to the ... more

Polish core inflation surprises with strong acceleration in March

Polish core inflation gained 0.6% y/y in March, the National Bank of Poland (NBP) announced on April 12. The reading is 0.1pp above market expectations and 0.3pp higher compared to February.   ... ... more

Erdogan pressure drives Turkish banks to cut mortgage rates to below deposit rates

Rising liquidity costs caused by the implicit rate hikes of the Turkish central bank pushed the average cost of 3-month deposits for Turkey's banks to 11.30% while the average mortgage rate declined ... more

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