Figures released by the Central Statistics Office earlier in the day showed headline inflation HUCPIY=ECI slowing to 3.4% percent year-on-year in June.

"Households' inflation expectations remained at moderate levels in the month, consistent with the 3 percent inflation target," the central bank said.

Last month in its inflation report the bank said its closely-watched gauge of lasting price developments, tax-adjusted core inflation, would peak at 3.8% in the fourth quarter and decline from the end of 2019.