June is characterized by a stable inflationary environment in Hungary

By: Trademagazin Date: 2024. 07. 08. 11:40

The annual inflation in Hungary could remain below the central bank’s target range in June, below 4% based on experts’ forecasts. According to the analysts interviewed by Portfolio, the Central Statistical Office (KSH) is expected to announce an inflation figure of 3.9%, which indicates a slight improvement in market expectations.

According to analysts, after the 4% inflation in May, the pace of monetary deterioration moderated somewhat in June, which is mainly due to the slowdown in food price increases and the decrease in the price of vehicle fuel. The latter factor had a prominent effect on the slight decrease in the inflation rate.

According to Orsolya Nyeste, Erste Bank’s senior analyst, the increase in the price of various product groups was almost completely balanced by the drop in vehicle fuel prices in June. Zsolt Becsey, Unicredit’s chief economist, adds that after the completion of the repricing processes of the major service providers in May, the process of price normalization began.

At the same time, Becsey warns that the growth of inflation expectations, transport costs and wage pressures still show higher values than would be compatible with price stability. Nevertheless, the June data give cause for optimism and indicate that inflationary pressures may moderate in the coming months.