Inflation decreased to 25.4%

In the coming months, due to base effects, the continuous decrease in fuel prices and price reductions announced for some food products, we expect inflation to moderate gradually and then sharply from the middle of the year, so we expect inflation to peak in January. Base effects can be strengthened by the fact that international raw material, crop and energy prices and transport costs have fallen significantly in recent months, so we do not expect any further external price shocks, and the strengthening of the forint can also moderate inflation. The formation of a price-wage spiral can be observed in some sectors, which may slow down the rate of inflation, however, we still expect single-digit inflation by the end of this year. At the same time, this year’s average annual inflation may exceed our previous expectation of 17.6%.