Hungarian inflation rate jumps unexpectedly

Published: 12 June 2004 y., Saturday
The official figures, released Friday, compare with a year-on-year inflation rate of 6.9 percent in April. Analysts had been expecting the May figure to exceed the April figure by no more than 20 basis points and said interest rate cuts in Hungary were now less likely than previously anticipated. The central bank surprised markets earlier this week by leaving interest rates unchanged at 11.5 percent. Robust economic growth has also sucked in imports. Thursday's trade deficit figures were double market expectations. Hungary joined the European Union May 1 and hopes to adopt the euro by the end of the decade at the latest. However, economists say, strict convergence criteria such as a 3 percent cap on the budget deficit as a percentage of gross domestic product and stringent requirements on interest rate differentials with the eurozone will be hard to meet.
Šaltinis: UPI
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