There was hardly any positive news from the Hungarian CPI data on Thursday. Economists at Commerzbank expect the forint to remain under downside pressure.

Core inflation shoots up

“While headline inflation slightly undershot market expectation, tax-adjusted core inflation shot up sharply from 16.6% YoY to 18.9% YoY.”

“The August acceleration once again neutralised all the rate hiking which MNB has carried out so far and rendered the real interest rate at one of its deepest negative levels ever. This is why we would anticipate a weaker forint exchange rate over the coming quarter as the Fed and ECB continue to implement aggressive monetary tightening.”