Central EuropeHungaryInflation

Hungary: Inflation forecast

Inflation edged slightly upward in Hungary, up to 2.0% yoy in March. Survey data shows that historically low consumer inflation expectations are currently winning the tug-of-war against higher expected pricing power. The MNB continues to see inflation rising in the coming months but remaining in the lower half of the tolerance band (target is 3.0%). Our view is in line with the MNB’s.