Hungary's industrial producer prices slip and trade surplus widens in May

Hungarian industrial producer prices fell 0.7% in May after two months of growth, bringing the overall index down 1.7% month‑on‑month and 1.0% year‑on‑year, according to the Central Statistical Office (KSH). Domestic sales prices rose 1.9% YoY, while export prices dropped 1.8%, with the manufacturing sector showing a 2.9% domestic price increase and the energy sector seeing a 1.3% decline.

In foreign trade, Hungary posted a 502‑million‑euro surplus in May, improving the balance by 160 million euros versus a year earlier. Export volume was 5.1% lower YoY and 1.2% lower seasonally, while imports fell 2% YoY. The forint strengthened 11% against the euro and 14% against the dollar, influencing the trade figures. Analysts note that a strong forint and external factors such as the Iran‑related war create pressure on Hungarian exporters, despite the modest surplus.

Overall, the data suggest mixed signals: lower producer prices could ease inflation pressures, but weaker export performance and currency strength may dampen growth prospects for the second quarter.