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Inflation Rises To 7.4% In November

HUNGARY
  • Hungary CPI inflation surged to 7.4% in November, slightly more than expected (7.3% YoY), and up from 6.5% the previous month.
  • HUF is slightly weaker following the release, with EURHUF currently trading at around 367.
  • The NBH is likely to continue to rise its 1W deposit rate on Thursday by 10bps to 3.20% in order to limit a potential HUF depreciation.
  • Weaker HUF has been supporting inflation expectations; NBH Virag recently mentioned that anchoring inflation expectations is key to avoid persistently high inflation.

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