Hungary's headline inflation rate, currently the highest in the European Union, can fall to an annual 7% by the end of this year, central bank Governor Gyorgy Matolcsy told an economics conference on Thursday.

Matolcsy said various price caps imposed by Prime Minister Viktor Orban's government had added some 3 to 4 percentage points to inflation before they were phased out, while economic growth slowed sharply due to high inflation. (Reporting by Gergely Szakacs)