Hungary's May inflation slows to 1.8%, back within central bank target

May 2024 data showed Hungary's consumer price index rising 1.8 % year‑on‑year, a slowdown from the 2.1 % increase recorded in April. The figure places inflation again inside the Magyar Nemzeti Bank’s 2‑4 % tolerance band.

The decline was driven by falling food prices and modest changes in services, while a drop in electricity costs helped offset rising gas prices. Analysts note that the favourable outcome remains vulnerable to external shocks, particularly the ongoing conflict in the Middle East, which could raise energy and transport costs. Domestic measures such as protected fuel prices, utility price safeguards and a margin‑stop policy are cushioning the impact.

Despite the current slowdown, projections suggest inflation may gradually accelerate from the summer months, potentially reaching 4‑5 % by year‑end if international energy market turbulence persists.