Actual (Dec): 0.2 % m/m, 4.1 % y/y
Consensus: 4.3 % y/y
Previous (Nov): 0.7 % m/m, 4.3 % y/y
The Hungarian inflation decreased in December and came out below the market forecast. There is mostly food and fuels behind the lower figues. Food prices incresed by only 0.1 pct over the month, while fuel prices stagnated. The price index was driven higher by tobacco and alcoholic beverages, and a minor contribution also came from services.
Although the headline inflation has eased, it has low chance to discourage the MNB from more tightening, because the core inflation has accelerated to 3.3 pct. Moreover, due to the VAT hike and further forint weakening, consumer prices are likely to accelerate significantly in January.