Hungary: Inflation data is mixed bag – ING

Sandeep Kanihama FXStreet Contributor

Hungary’s headline inflation came in at 3.4% year-on-year in August, showing no change from July, notes Peter Virovacz, Senior Economist at ING.

Key Quotes

“The surprise in this reading wasn’t that headline inflation has remained above the 3% target for a third month but the fact that it did not show any softening.”

“Despite the headline reading overshooting the NBH's 3.3% forecast, we don’t see this as a game changer, as core inflation surprised on the downside.”

“The 2.2% YoY reading here was a 16-month low, showing that the recent upside surprise in inflation came from one-off factors, which will be ignored by the monetary authority.”

“For the rest of the year, we expect inflation to remain between 3.1-3.4% YoY.”

“In any event, we don't see the NBH changing its inflation forecast materially at next week’s meeting.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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