Hungary Inflation Rate Plunges, Opening Monetary Easing Path

Hungary’s headline inflation rate plunged to the lowest level in almost eight years in January, strengthening expectations that the central bank can start cutting the European Union’s highest key interest rate.

The annual inflation rate fell to 2.1% from 3.3% in December, according to data published by the Budapest-based statistics office on Thursday. The gauge fell below the central bank’s 3% target for the first time in five years and reached the lowest level since March 2018. The median estimate in a Bloomberg survey was for a 2.4% reading.