Hungary inflation rises to 1.6 percent in September

Hungarian inflation rose to 1.6 percent in September, up from 1.3 percent in August, according to data from the Hungarian Central Statistical Office. Despite the increase, the rate remains within the 2–4 percent target range set by the Magyar Nemzeti Bank and is lower than many analyst expectations.

The uptick was primarily driven by rising fuel prices, which increased by 5.9 percent month-on-month and 6.9 percent year-on-year. This surge is attributed to the phase-out of protected fuel prices and rising global oil prices caused by geopolitical tensions in the Middle East.

In contrast, food inflation acted as a moderating factor, with prices decreasing by 1.3 percent on an annual basis. Factors contributing to stable food prices include a steady forint exchange rate, lower production costs, and price cap measures. Household energy costs also remained stable, with a monthly increase of only 0.2 percent.