MNI BRIEF: HNB Flash Analysis Sees May CPI, Core At 4.0%
Latest inflation figures support overall downward trend in price growth, while underlining need for cautious approach to cuts
Both CPI and core inflation rose by 4% in May, according to flash analysis published by the National Bank of Hungary on Monday, with household inflation expectations rising to the same level even as corporate expectations for both retail and services prices declined.
"Inflation and core inflation fluctuated at the bottom of the forecast range in the March Inflation Report," the Bank said in a statement.
Consumer prices were down 0.1% on a month--on-month basis, but core prices increased 0.5%. Price growth of sticky-price products dropped 0.2%, while the increase of core inflation excluding food products fell by 0.3% in annual terms according to the HNB’s measures of underlying price developments, it said.
The HNB cut key interest rates by 50bps last month, and said core inflation seen fluctuating at 4.5.0% this year means a “careful and patient” approach to easing remains justified, with its next decision due on June 18 (See MNI NBH WATCH: Hungary CenBank Cuts 50Bp To 7.25% As Expected)