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Investing.com -- Hungarian headline inflation rose to 4.4% in May, slightly exceeding analyst forecasts of 4.3%. On Monday, the data showed core inflation eased to 4.8%, despite the headline figure coming in above expectations.
The inflation increase was primarily driven by higher energy prices, particularly in the gas sector. Food prices increased less than anticipated, helping to partially offset the energy-related inflation pressures in the overall index.
While year-on-year core inflation remains relatively high, the monthly data shows more encouraging signs. Core inflation increased by just 0.2% month-over-month in seasonally adjusted terms, with the three-month moving average of annualized core inflation easing to 2.7%.
Citi analysts provided their outlook on Hungary’s inflation trajectory, noting they expect inflation to hover around 4% for most of this year. Their forecast suggests inflation will gradually decline toward or below 3% in the first quarter of 2026.
The analysts also predicted that inflation would likely rebound in the latter part of 2026, suggesting the expected moderation in price pressures may be temporary rather than representing a permanent shift to lower inflation levels.
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