Hungary cbank to cut CPI to target from 2012

BUDAPEST, Nov 12 (Reuters) - Hungary's central bank is committed to cutting inflation to its 3 percent target from 2012, the bank's deputy governor said on Friday. "Unfortunately we see that the government consistently ... forecasts inflation above the 3 percent target, which means they think we will never achieve it," Ferenc Karvalits told a business meeting. "This unfortunately does not help the credibility of this target," he said. "We are committed to reducing inflation to this 3 percent target from 2012." Hungary's headline inflation rate rose to 4.2 percent in October on the back of a sharp increase in food prices. The government forecasts inflation above the bank's 3 percent target in the coming years. (Reporting by Gergely Szakacs; Editing by Ron Askew) Keywords: HUNGARY INFLATION/ (; +36 1 327 4748; Reuters Messaging: COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

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