Hungary cenbank ups annual average CPI fcast to 4.2% from 3.6% for 2009 (2)

(Adds tables with new forecasts, assumptions)
The staff of the National Bank of Hungary (NBH) has raised its forecast for 2009 annual average inflation to 4.2% from 3.6% in its latest quarterly Inflation Report released on Monday. This provides quite a heavy argument for the necessity of today's rate hike.

The 2008 projection was upped to 6.3% from 5.9%.

The NBH has for the first time released a forecast for 2010 annual average CPI, which is 3.0%. This means the central bank now expects to meet its 3.0% goal only in 2010, as opposed to previously expected 2009.

You find the May Report on Inflation here.

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