BUDAPEST: Hungary’s annual consumer price index continued to fall in March, dropping into negative territory for the first time since last September, registering -0.2 percent, the Central Statistical Office (KSH) said on Friday.
Emerging market analysts in London had forecast headline CPI at 0.1 percent for March. CPI dropped from 0.3 percent in February and 0.9 percent in January. In a month-on-month comparison, inflation was up 0.1 percent in March.
Takarekbank analyst Gergely Suppán said inflation was unlikely to reach the National Bank of Hungary’s 3 percent target till 2018, making room for further rate cuts and more unconventional monetary policy moves. CIB analyst Sándor Jobbágy said headline CPI could stay in negative territory until July. He put average annual inflation at 0.5 percent.
Erste Bank chief analyst Gergely Urmossy said CPI would probably stay negative in April, too. He said central bank policy makers could bring the base rate down to 0.75 percent by June from 1.20 percent at present.
