Hungary’s inflation rate slowed down in October

Less than one percent year-on-year inflation!

The 0.9% year-on-year data in October marks a huge and unexpected decrease compared to 1.4% in September.  The consensus forecast of economic analysts in a Portfolio.hu poll was for a 1.3% CPI for October.

This may prompt the National Bank of Hungary to lower the base rate, which is currently an all time low 3.4%, even more than analysts previously thought.  However the danger of deflation, which was absolutely unthinkable in Hungary a few years ago, is now becoming real.

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