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Inflation Data Should Confirm NBH Easing Bias

HUNGARY
  • Inflation data out this morning showed CPI come in mixed, at 0.0% M/M vs. Exp. -0.1%, while Y/Y was lower than forecast at 7.9% vs. Exp. 8.0%.
  • Electricity and gas prices slowed further on the month, however the impact was countered by an uptick in food (+0.5% on the month, highest in overt six months) and clothing/footwear prices, which slowed at a more gradual pace than forecast. Electricity/gas was also the trigger for the slowing Y/Y rate, dropping 18.1% on the year.
  • Following the inflation release, a statement from Economic Development Minister Nagy, who again called high interest rates the only impediment to growth.
  • Trade balance data also released, showing a narrower surplus at EUR1.04bln for October.
  • Amid high tensions between Budapest and Brussels, Hungary have rejected a meeting proposal between Ukraine's Zelenskiy and Orban.

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