MNB expects inflation to peak in the fall

MNB

Photo by noppawan09/Shutterstock.com

The National Bank of Hungary (MNB) said it expects inflation to peak in the fall months and then start to slowly decrease as energy, raw materials and food prices continue to put pressure on global and domestic inflation from the cost side, the MNB said in its quarterly Inflation Report released on its website.

Inflation is peaking higher and in a more sustained manner globally than earlier expected, MNB executive director Gergely Baksay said at the press conference presenting the report.

The time profile of inflation will be significantly influenced by the future phase-out of the government's price cap measures, he said.

These government measures will moderate inflation by 4.3 percentage points in 2022 and 0.7 points in 2023, he said.

The analysts made the technical assumption that the price caps on certain food staples and vehicle fuels will be phased out gradually from Oct. 1, 2022, until June 30, 2023, as they have no information on the measures after October he added.

The MNB expects inflation to return to the central bank's tolerance band at the end of 2023 then reach the 3% target in the first half of 2024.

ADVERTISEMENT

Gen Gov't Deficit to Reach 6.1% of GDP in 2022 - Varga Analysis

Gen Gov't Deficit to Reach 6.1% of GDP in 2022 - Varga

Horthy Statue to be Unveiled in Parliament Parliament

Horthy Statue to be Unveiled in Parliament

UPS Appoints Regional Director Appointments

UPS Appoints Regional Director

Completion of Metro Line M3 Renovation Delayed City

Completion of Metro Line M3 Renovation Delayed

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.