The inflation rate in Hungary saw an increase for the first time in 15 months in April, albeit only by a small margin, according to a report from the Hungarian Central Statistical Office released on Friday.
April's consumer prices climbed up by 3.7% compared to the previous year, a slight increase from the 3.6% rise seen in March, which was the lowest inflation rate since February 2021. However, the inflation rate remained above the central bank's target of 3.0%.
Meanwhile, the core inflation rate, which excludes volatile items like food and energy, eased to its lowest in 31 months, slumping to 4.1% from 4.4% the previous month.
The growth rate of food prices picked up a bit, coming in at 1.0% compared to the 0.7% increase seen in March. In contrast, the cost of utilities fell by 4.5%.
Comparing month-on-month data, April's consumer price index increased by 0.7%, slightly lower than the 0.8% increase in March.
Senior economist at ING, Peter Vivovacz, remarked that the recent inflation data underscores the central bank's cautious stance on interest rate policy. He predicted that interest rate cuts will carry on for the next couple of months. He added that given favourable market conditions prevail in the upcoming weeks, there could be room for an additional 50 basis points interest rate cut in May.
