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10th September, 2020

Inflation speeds up slightly in August



Inflation was 3.9% year-on-year in August, up from 3.8% in July, the Central Statistics Office announced Wednesday. The actual figure was in line with forecasts, media observed.

The price of sausages rose 18.1%, the price of sugar was up by 13.4% and seasonal food such as fruits and vegetables were 17.1% pricier than a year ago. Fuel prices alone dropped by 4.7%.

Core inflation reached 4.7% year-on-year, up 0.3% from the previous month. The inflation index for pensioners rose to 4.3% year-on-year, down 0.1% month-on-month. In the first eight months, the average year-on-year inflation was 3.5%.

The recent figure does not support the need for an extra loose monetary policy which is maintained by the central bank for supporting the economy, analysts said. The goal of the MNB may continue to keep long-term interest rates low, but short-term rates high enough to prevent speculation against the forint. (ksh.hu; napi.hu; novekedes.hu)
10th September, 2020

Fitch ups IIB’s rating



Fitch upgraded its rating on the Budapest-based International Investment Bank (IIB) from BBB+ to A-, the credit rating agency announced on Tuesday.

The hike was a reaction to the relocation of the IIB headquarters from Moscow to Budapest which will diversify the activities of the bank in the EU, the agency explained.

Since the last rating review, several positive developments took place: the most important being that the average rating on loans and guarantees improved from B+ to BB- in the first half of 2020, thanks to increased lending to EU-based clients.

The share of non-performing loans is only 1.5% at IBB, Fitch underlined.

Shareholders promised to provide additional capital to the bank by 2022 that will provide a strong liquidity buffer.

In addition, financing sources of the bank are also getting more diversified, the agency highlighted. (portfolio.hu)
10th September, 2020

MNB’s inflation indicator up in August



Tax-effect-corrected core inflation was 4.2% year-on-year in August, up from 4.1% in July, the MNB announced on Wednesday. This indicator is over the 4% ceiling of the target band of the MNB.

Changing taxes added 0.5 percentage points to core inflation which stood at 4.7% in August, due to the lasting effects of the excise-tax hike on tobacco products in July, the MNB said.

The inflation index on demand-sensitive products was 3.6%, while the price index on products with less frequently changing prices was 4.1%, the same as a month earlier. (portfolio.hu; novekedes.hu; index.hu)


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