Magyar Bankholding expects inflation of 11.7 percent this year and 7.6 percent next year

In the coming months, inflation may rise to 11.7 percent this year, and fall to 7.6 percent next year due to price changes, the weakening of the forint, tax increases, and higher-than-average consumers’ energy bills, according to the second-quarter macroeconomic analysis of Magyar Bankholding’s macro analysts. Gergely Suppan predicts GDP growth of 5.7 percent for this year and 2.7 percent for 2023 due to the protracted war, the deteriorating external environment, rising interest rates, the partial elimination of discounted household energy prices, and this year’s severe drought damage.