Annual inflation steady at 0.1% in March

Hungary’s twelve-month consumer price index (CPI) was 0.1% in March, unchanged from February, the Central Statistical Office said on Tuesday. Analysts polled by business daily Napi Gazdaság had forecast the March twelve-month CPI at 0.2%. The estimates of London analysts varied between 0.2% and 0.4%. In a month-on-month comparison, consumer prices rose by 0.2% after increasing 0.1% in February. March inflation was again lower than expected, and slower core inflation indicated little underlying pressure, Erste Bank analyst Orsolya Nyeste told state news agency MTI. The twelve-month index could reach 2% by the end of the year but will stay well below the 3% central bank target, Nyeste said. The latter bank is expected to cut its forecast for annual average inflation to below 1%, she added. Zoltán Török of Raiffeisen Bank attributed the unexpectedly low index to hardly rising food prices. He expects some rise in inflation between May and the end of summer before a rise to between 2-3% by the end of 2013.