Analyst: the VAT reduction will pull down inflation

Until the submission of the budget, the impact of measures can not be seen accurately, but it is certain that the VAT reduction on several product groups will pull down inflation – Németh Dávid, senior analyst of the K&H Bank explained MTI on Friday.

The expert believed that if the VAT rate cuts planned for next year will have the same effect on consumer prices as the VAT reduction on pork, then the VAT cuts may reduce the annual average inflation by about 0.5 percentage points in 2017. Thus, contrary to the previous expectations of 2.5-2.6 percent inflation, around 2 percent is expected for next year. (MTI)