A rate hike in Hungary, retail sales figures in Mexico and PPI numbers in South Africa are next week’s emerging markets highlights.

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Hungary: Continued tightening expected

We see some improvement in Hungarian economic sentiment in January, especially on the consumer side, driven by a 20% increase in the minimum wage as well as government measures to improve households' financial situation. Next week’s labour market statistics will show a further strengthening, signalling that employers are struggling with labour shortages and costs. After an upside surprise in December's inflation reading, the National Bank of Hungary will continue its tightening cycle, with a 30bp move in the base rate and in the one-week deposit rate as well, pledging to continue hiking rates in the coming months.

EMEA Economic Calendar

Image Source: Refinitiv, ING, *GMT