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

  • 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.

  • Online Bank Card Fraud Damages In Hungary Jump In Q2

    Online Bank Card Fraud Damages In Hungary Jump In Q2

    • 18 Dec 2018 7:53 AM

    The number and value of frauds related to online purchases made with banking cards were both up in the second quarter of 2018 compared with the same period a year before, the National Bank of Hungary said.