Hungary’s April consumer inflation slows, food and fuel prices drop

Published 09/05/2025, 10:12
Hungary’s April consumer inflation slows, food and fuel prices drop

Investing.com -- Hungary’s consumer prices saw a slight rise of 0.2% month-on-month in April, leading to a 12-month headline rate of 4.2%, a decrease from the 4.7% published in March. Core inflation also decelerated to 5% year-on-year. The inflation in April was primarily influenced by a reduction in food prices due to government measures and a drop in fuel prices.

Despite the government’s price-reducing measures, the rate of inflation decline was slower than anticipated, suggesting that the underlying price pressure in the economy remains robust. Food prices saw a drop of 1.3% month-on-month, although this was less than the predicted 1.8% decrease.

Various food products including margarine, milk products, flour, butter, milk, edible oil, other meat preparations, cheese, poultry meat, sugar and pork saw a significant monthly price drop.

However, this decrease was somewhat counterbalanced by a rise in the prices of other food items such as chocolate and cocoa, buffet products, non-alcoholic beverages, rice, pasta products, rolls, and bread. There was also a notable monthly price increase of 1.3% for alcoholic beverages and tobacco.

Unexpectedly, household energy prices saw an 8.3% month-on-month increase as reported by the CSO, with gas prices being the main contributor. Service inflation remained high, with a 0.8% month-on-month rise in prices. Fuel prices, on the other hand, decreased by 1.4% month-on-month.

Erste Bank (VIE:ERST) stated, "All in all, uncertainties remain significant even in the short term. Overall, we now see that the likelihood of achieving the government’s 4.5% forecast for this year has increased as a result of the above measures.

However, given that a wide range of price control measures are likely to lead to suppressed inflation, this implies a higher inflation rate in the medium term. There is an increasing likelihood that inflation will remain above the tolerance range even in 2026."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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