Key events in EMEA next week

After the Hungarian government’s announcement of freezing some of the year-end spending, we see a much lower monthly deficit in December than we used to see in the past couple of years. The November industrial production data will show us the impact of the winter holiday shutdowns; thus we expect another decline. The most important data next week comes on Friday when we get the December inflation reading. The significant drop in fuel prices probably had a major impact on the headline number, thus we see monthly inflation at just 0.1%, the lowest reading in 2021. With that, the YoY figure will move south to 7.2%. In contrast, core inflation will rise to around 6% YoY on durables, processed food and services.