Presenting the Latest Inflation Report of the MNB
7 Articles
7 Articles
The extreme drought will also curb growth, according to the central bank's expectations, but the new inflation target will be achieved by 2028.
The Hungarian National Bank (MNB) will present its September Inflation Report at a press conference on Thursday at 10 a.m. The key figures of the document containing the current macroeconomic forecasts were already revealed on Tuesday (from which it was revealed that the central bank's staff expects an average growth of 1.8 percent and inflation of the same amount for this year), but now the detailed forecasts are also revealed. We will report o…
Due to the strengthening of the forint in the spring, the Hungarian National Bank expects lower than expected inflation of only 1.8 percent this year, but next year the rate of monetary deterioration may accelerate to 3.1 percent due to the deteriorating external environment. Economic growth will also be curbed by drought weather to 1.8 percent in 2026, while the central bank has taken a historic step for the first time in more than twenty years…
The strengthening of the forint has been incorporated into prices so quickly that there has been no precedent for it, and the drought and energy crisis may reduce GDP, but are not expected to cause the same damage to inflation as the drought in 2022, the central bank believes.
Due to international geopolitical conflicts, soaring energy prices and extreme drought, the MNB cut its economic growth forecast for this year to 1.8 percent, while the Monetary Council cut its inflation target to 2.5 percent. The increase in excise taxes on tobacco products and the consumption impact of the increase in the minimum pension are also shaping the trajectory.
Inflation could spike again next year, with this year's budget deficit reaching 6.9 percent of GDP and public debt rising to 77.7 percent, according to the MNB's latest forecast. The central bank expects inflation to stabilize at the new 2.5 percent target by mid-2028.
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