The Hungarian Central Statistical Office indicated that inflation in July rose to 13.7% YoY. from 11.7% in June and topped analysts' expectations of 13.1%.
- Hungary's inflation reached the highest level since 1998, however the Hungarian CPI index is not fully reliable, partly due to the introduction of maximum prices for basic products and fuels by politicians;
- CPI inflation for Hungary is only 'formally' lower than in Poland. The prices of groceries in Hungary are rising at 'crazy pace'. In July, an over 27.0% increase was recorded - for comparison, in Poland it amounted to “just” over 15.0%;
- From November 2021, the Hungarian central bank raised rates by 795 basis points, which is a record in the EU. The last, July rate hike in Hungary amounted to 200 bp. Despite this, inflation continues to rise, and the Hungarians have to wait for the effects of interest rate hikes. The money supply in Hungary remains high, which supports inflation and limits the impact of interest rate increases.
EURHUF, interval H4. The forint has depreciated against the euro by more than 6% since the beginning of 2022. The temporary appreciation of EURHUF slowed down around 390 HUF, which coincides with the 38.2 Fibonacci retracement and February highs. Consolidation at these levels may herald a continuation of the depreciation of the Hungarian currency. The forint is also weakened by the high fiscal deficit, the deterioration of the current account balance and the lack of agreement regarding transfers of the EU funds from the National Reconstruction Program. Source: xStation5
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appThe content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
