Inflation will ease up in H1 2010 in Hungary

2010-01-12

Inflation in Hungary is forecast to peak in February 2010 and to ease down in the following months, falling at a steeper rate after H1, and reach an annual 2.5% by the end of the year, according to Barclays Capital’s analysis. Goldman Sachs’s analysts expect the annual inflation to fall under 3% in 2010, the level forecasted by the Hungarian National Bank.
The initial increase in the inflation rate is attributed to the increasing fuel and food price as well as to the higher price for electricity starting from November 2009.
Barclays analysts forecast 5.5% inflation rate for December 2009, following a 5.2% annual rate in November and 4.7% in October.