Hungary’s Central Bank Looks Ready to Start Monetary Tightening After CPI Remains Stubbornly Over 5%

2021. június 11.

bne IntelliNews

Consumer prices grew 5.1% y/y in April at the same pace as in the previous month, driven by higher tobacco and vehicle fuel prices, the statistics office announced on June 9. After the reading, Hungary’s central bank governor issued a hawkish statement, saying the turnaround in monetary policy could begin in June if the rate-setting Monetary Council sees fit. The prolonged rise in inflation could put the economic recovery at risk and the economy could weather a rate rise, Matolcsy added.