Published: December 21 2023
In Hungary, the annual consumer price index is expected to decrease below 6% by the end of the year. This trend of disinflation is projected to continue into early next year, and inflation is anticipated to return to the central bank's tolerance band in 2025.
Factors supporting disinflation
According to András Balatoni, a central bank director, there are several factors contributing to the disinflationary trend in 2023. These include disciplined monetary policy, government measures to strengthen competition, muted domestic demand, and a significantly lower external cost environment.
Projections for inflation rates
The central bank's latest quarterly inflation report predicts an annual average CPI of 17.6-17.7% for this year. However, this rate is expected to decrease to 4.0-5.5% in 2024. The report also suggests that inflation could sustainably return to the central bank's 3% tolerance band by 2025.
Implications for the economy
The decrease in inflation rates has important implications for the Hungarian economy. It could lead to improved purchasing power for consumers, as well as more stable prices for goods and services. Additionally, it may create a more favorable environment for businesses and investment.
Monitoring inflation trends
As inflation continues to be a key economic indicator, it is important for policymakers, businesses, and consumers to closely monitor these disinflationary trends. By staying informed about inflation rates, individuals and organizations can make better financial decisions and adapt their strategies accordingly.
Questions & Answers
What is the expected inflation rate in Hungary in 2023? The annual consumer price index in Hungary is expected to fall below 6% by the end of 2023.
When is inflation expected to return to the central bank's tolerance band in Hungary? Inflation is projected to sustainably return to the central bank's 3% tolerance band in Hungary by 2025.
What factors are supporting disinflation in Hungary in 2023? According to András Balatoni, a central bank director, disciplined monetary policy, government measures to strengthen competition, muted domestic demand, and the significantly lower external cost environment are the factors supporting disinflation in Hungary in 2023.
What is the central bank's projection for annual average CPI in Hungary this year? The central bank projected an annual average CPI of 17.6-17.7% in Hungary this year.
What is the projected CPI range for 2024 in Hungary? The projected CPI range for 2024 in Hungary is 4.0-5.5%.
Who presented the National Bank of Hungary's December Inflation Report? The National Bank of Hungary's December Inflation Report was presented by András Balatoni, a central bank director.
