Inflation slightly picks up

Consumer price inflation was 3.5 per cent in March, a bit higher than expected. As a result, a nine-month trend of diminishing inflation rates was brought to an end. Acceleration in the inflation pace was mainly due to an increase in the regulated prices of electricity. But the core inflation rate went on shrinking and several factors cause one to anticipate an ongoing low inflation economy in Hungary. Experts expect the National Bank to continue its cautious monetary policy and to cut interest rates at the next rate-setting session by 25 basis points at most. (VG)