Hungary's cb chief expects inflation around 7%

Average inflation in 2004 will be "around 7%," but will decline to 4-5% in 2005, Zsigmond Jarai, the president of central bank MNB told parliament's budget committee on Tuesday 21 September.

Jarai noted that the increase in the inflation rate this year was due entirely to tax hikes at the beginning of the year, therefore MNB cannot be held responsible for it. However, core inflation and economic developments make it possible for inflation to drop to 4-5% next year, he added.

The MNB governor e