Hungary's inflation eases as strong forint and falling food prices drive CPI slowdown

June 2024 data show Hungary's consumer price index (CPI) rose 1.7% year‑on‑year, down from 2.1% in April and 1.8% in May. Analysts attribute the easing mainly to a stronger forint and a decline in food prices, while services inflation remains the main driver of overall price pressure, especially in labour‑intensive sectors.

Experts say the trend supports further cuts to the National Bank of Hungary's base rate, with a July rate cut already expected and an August reduction considered likely. The bank is projected to keep monetary easing through the end of the year, aiming for annual inflation around 3%.

A separate July survey of pensioner households shows the typical food‑basket cost rose by 525 forints (about 0.9%) compared with the previous month, reaching 28,047 forints. Despite the monthly increase, the basket is still cheaper than a year ago, with an annual saving of roughly 2,200‑2,300 forints. Prices of items such as tea, eggs, apples, potatoes and pork liver fell, while some products rose. Analysts advise pensioners to monitor unit prices and plan purchases to mitigate short‑term spikes.

Overall, the combined data suggest that while headline inflation is moderating, sector‑specific price movements and service‑sector pressures could keep upward pressure on consumer costs in the coming months.