Inflation may accelerate to 3.5% y/y in Q1 2020

In May consumer inflation was above market consensus due to faster growth in food prices. According to the second estimate of the Central Statistical Office (GUS), consumer inflation amounted to 2.4 percent y/y in May against 2.2 percent y/y in April. 

Most economists expect that inflation will exceed 2.5 percent at the end of 2019 and will approach 3.5 percent y/y in Q1 2020. Economists point out that regulated prices remain a significant risk for the inflation path in the next few months. Most of them expect the Monetary Policy Council (MPC) to keep interest rates unchanged until the end of 2020.

(ISBnews)