Yesterday’s release of the Hungarian inflation confirmed that it stayed well below the NBH target. In June, consumer prices rose annually by 1.9%, just 0.1 percentage points higher than in May. On month-on-month terms the inflation increased by 0.2%. The Statistical office said that the main reason for low year-onyear inflation was the reduced prices of electricity, gas and other fuels. Although a new financial transaction tax can affect the inflation already in August, weak consumer demand together with another administrative price cuts will keep inflationary pressures subdued. In this view it is not surprising that NBH is ready to continue in its monetary easing. This bias was confirmed again by Vice Governor Ferenc Gerhardt yesterday.