Higher Oil Prices May Raise Consumer Price Index In Hungary

  • 22 Jun 2018 10:37 AM
  • Hungary Matters
Higher Oil Prices May Raise Consumer Price Index In Hungary
Inflation could rise slightly over the 3% mid-term target in the coming months on the back of sharp increases in global oil prices, but the National Bank of Hungary (NBH) said it expects no spillover effects in a quarterly report.

“Inflation expectations are well-anchored; thus the increase in oil prices is not expected to induce second-round spillover effects,” the central bank’s Monetary Council said in an executive summary prefacing the Inflation Report.

“After the temporary, inflationboosting effect of the oil price change has faded, from mid-2019 the rise in underlying inflation trends will ensure the sustainable achievement of the 3% inflation target,” the Council said.

The Council said the inflationary effect from the labour market “will remain moderate” as a further cut in the payroll tax counters the increase in labour costs.

It added that the correlation between domestic labour costs and consumer prices has weakened in recent years, in line with international experience.

  • How does this content make you feel?

XpatLoop Media Partner

Hungary Matters

Launched in January 2014, this twice-daily newsletter covers 'everything you need to know about what’s going on in Hungary and beyond', according to its publisher the state media agency MTI. Click the title above for more info, and to subscribe.

Explore More Reports

  • National Bank Of Hungary Leaves Base Rate Unchanged

    National Bank Of Hungary Leaves Base Rate Unchanged

    • 29 May 2019 8:32 AM

    The Monetary Council of the National Bank of Hungary (NBH) left the central bank base rate and overnight deposit rate unchanged at 0.90% and -0.05%, respectively, at a monthly policy meeting.

  • Hungary’s 2018 Budget Deficit 2.2% Of GDP

    Hungary’s 2018 Budget Deficit 2.2% Of GDP

    • 2 Apr 2019 8:18 AM

    Hungary’s budget deficit, calculated according to the European Union’s accrual-based accounting rules, came to 2.2% of GDP last year, the Central Statistical Office (KSH) said.

  • Hungary To Adopt Euro ‘In Coming Decades’

    Hungary To Adopt Euro ‘In Coming Decades’

    • 5 Feb 2019 7:55 AM

    Hungary will adopt the euro “in the coming decades” and needs to learn from the lessons of the past concerning the processes affecting the common currency, National Bank of Hungary (NBH) governor György Matolcsy said in a presentation delivered at the central bank’s annual Lamfalussy Lectures.