Hungary’s consumer prices rose by 0.9 % y/y in November
Three Czech parties reached a coalition agreement
Hungary’s November inflation did not surprise markets. According to the Central statistical office (KSH), consumer prices rose by 0.9 % annually, at the same rate as in October. November core inflation was significantly higher, +3.5 % y/y.
Similarly to October, prices of electricity, gas and other fuels, as well as clothing and footwear decreased, while those of tobacco, alcoholic beverages and services rose. The CPI likely has not reached its bottom yet. The cut of utility tariffs valid
as of November 1 did not influence the November CPI, since bills for November consumption will be issued will a delay in December. Therefore we expect inflation in Hungary to decrease further. With inflation far below the NBH target, we believe that the central bank will prolong its monetary easing cycle, nevertheless, due to current volatility of the forint, it will proceed with smaller steps.
Read the full report: FX Daily
KBC