Hungary's inflation rate drops to 2.1%, paving the way for the central bank to cut interest rates

Investing.com – According to the latest data, Hungary’s January inflation rate year-over-year dropped to 2.1%, down from 3.3% in December. This figure is below the market expectation of 2.4%.

The unexpectedly sharp decline in inflation may prompt the Hungarian Central Bank to resume a monetary easing cycle at its meeting later this month.

The significant decrease in inflation provides policymakers with more room to consider lowering interest rates as price pressures in the Hungarian economy continue to ease.

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