Can inflation in Hungary fall below 6% this year?

mbh central bank
Photo: Daily News Hungary

The annual consumer price index could fall below 6% by the end of the year, the disinflationary trend that started in 2023 will continue early next year and inflation will return to the central bank’s tolerance band in 2025, András Balatoni, a central bank director, said on Thursday.

At a press conference, presenting the National Bank of Hungary’s December Inflation Report, Balatoni said disciplined monetary policy, government measures to strengthen competition, muted domestic demand and the significantly lower external cost environment were the factors supporting disinflation in 2023.

In its latest quarterly inflation report, the central bank projected annual average CPI of 17.6-17.7% this year, which could fall to 4.0-5.5% in 2024 and could sustainably return to the central bank’s 3% tolerance band in 2025.

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