Hungary Not Directly Threatened by Risk of Deflation, Says Cbank Analyst

Budapest, August 1 (MTI) – There are no direct risks of deflation in Hungary at the moment, but stagnation triggered by a prolonged deflation in the eurozone could impact the Hungarian economy, too, an analyst at the central bank said.

Concerns about deflation in the eurozone deepened in early 2014, and the European Central Bank’s communications suggest that risks of a negative inflation are seriously taken into account, Gergo Motyovszki told a press conference on Friday.

Hungary’s situation is slightly different, however, there are no direct risks of deflation due to favourable growth prospects and a projected rise in inflation within 6-8 quarters to the central bank’s inflation target of 3 percent, he said.

Source: http://mtva.hu/hu/hungary-matters