The annual inflation rate in Hungary slowed to 3.3% in December 2025 from 3.8% in the previous month, matching market expectations. This marked the lowest rate since October last year, mainly driven by softer price increases for food (2.6% vs 3.2% in November), alcoholic beverages and tobacco products (7.1% vs 7.5%), and household energy and heating (8.9% vs 9.8%). Additionally, costs continued to decline for other items and fuels (-2.4% vs -0.8%). On the other hand, inflation increased at a faster pace for clothing items (1.6% vs 1.4%) and services (6.8% vs 6.5%). On a monthly basis, consumer prices rose by 0.1% in December, the same pace as in the previous month. Annual core inflation, which excludes volatile items such as food and energy, eased to 3.8% in December, marking the softest rise since August 2021, from 4.1% in November.