Analysts see average annual inflation overshooting NBH, gov’t targets

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Risk of higher gas and oil prices are likely to bring consumer prices over the targets of the National Bank of Hungary and the government, analysts told MTI on Thursday, after the publication of fresh CPI data for February.

Hungary’s twelve-month CPI was 5.7pc in February, slowing from 6.4pc in January, when several centrally-regulated prices were raised.

Erste Befektetesi’s Orsolya Nyeste said the drop in core inflation in February showed prices continue to be under control. But risk related to gas and oil prices remains high, making an “undershoot” of the government’s and central bank’s targets unlikely, she added.

Zsolt Kondrat of MKB Bank said higher oil and gas prices, as well as the elimination of the gas price subsidies would bring average annual inflation to 4.7pc, over the NBH’s target of 3.9pc and the government projection of 4.3pc.

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