Hungary: Inflation decelerates in May from the prior month
Latest reading: Consumer prices increased 1.8% in annual terms in May, following a 2.1% rise in the previous month. As such, inflation came in below the floor of the Central Bank’s 2.0–4.0% target range.
Relative to the prior month’s figures, there were reduced price pressures for food and non-alcoholic beverages (-2.1% in annual terms vs -0.9% in April) and housing and energy (+1.2% vs +1.7% in April). In contrast, there were higher price pressures for clothing and footwear (+0.4% vs -0.6% in April) and transport (+2.5% vs +1.9% in April).
Meanwhile, core consumer prices increased 1.9% on a year-on-year basis in May, following a 2.2% increase in the previous month.
Lastly, consumer prices declined 0.05% in May on a month-on-month basis, following a 0.40% rise in the previous month.