FX.co ★ Hungary Inflation Slows to 5-Month Low

In April 2025, Hungary witnessed a reduction in its annual inflation rate, which eased to 4.2%, down from 4.7% in March. This represents the most favorable rate since November 2024. The moderation in inflation can be attributed to slower price increases across several sectors: food prices decelerated to 5.4% from 7% the previous month, services saw a reduction to 7% from 7.5%, and consumer durables experienced a slight decrease to 2% from 2.1%. However, there was a noticeable rise in costs for alcoholic beverages and tobacco, which increased to 6.3% from 5.5%. Additionally, prices for electricity, gas, and other fuels rebounded, climbing to 3.5% from a decline of -2.7%. On a monthly comparison, consumer prices grew by 0.2% in April, contrasting with the flat rate observed in March. Core inflation, excluding volatile sectors like food and energy, fell to a four-month low of 5% in April from 5.7% in March.