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CEE Term Structure: Steeper in Poland and Hungary Amid Rising Inflation

EMERGING MARKETS
  • While the Czech term structure has flattened in the past month, it has steepened in Poland and Hungary (5Y20Y) as inflation in these two countries has been exceeding expectations in the past two months.
  • As a reminder, Poland preliminary CPI inflation came in higher than expected at 4.3% in April (vs. 3.9% exp.), up from 3.2% the previous month, diverging significantly from the NBP 3.5% upper tolerance band.
  • Last week, we saw that PPI inflation in Hungary surged to 9.6% in March, its highest level since August 2006. April CPI inflation print will come out on May 11.

Source: Bloomberg/MNI

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