FX.co ★ Hungary Inflation Eases to 4.7% in March

Hungary experienced a reduction in its annual inflation rate, which decreased to 4.7% in March 2025 from a 15-month peak of 5.6% in February, falling short of market predictions of 5%. This deceleration was primarily attributed to more modest price increases in the service sector (rising 7.5% compared to February's 9.2%) and food items (up 7% from 7.1%). Furthermore, there was a continued decrease in costs related to electricity, gas, and other fuels, which dropped by 2.7% in contrast to a slight decline of 0.2% previously. Conversely, there were persistent price rises noted for alcoholic beverages and tobacco, which increased by 5.5% from 5%, and consumer durables, which rose by 2.1% compared to 1.6%. On a monthly scale, the Consumer Price Index (CPI) remained stable in March, following a 0.8% increase in the prior month. Additionally, annual core inflation, which excludes the more unpredictable categories like food and energy, declined to 5.7% in March from a fourteen-month high of 6.2% in February.