The annual inflation rate in Hungary eased to 1.8% in May 2026 from a three-month high of 2.1% in the previous month, falling short of market expectations of 2.3%. The slowdown was due largely by softer price increases in food (0.5% vs 1.5% in April), alcoholic beverages, tobacco products (3.3% vs 4.1%), and consumer durables (2.4% vs 2.7%). At the same time, costs for household energy declined by 2% after falling 0.4% in the prior month. On the other hand, inflation accelerated for clothing (1.1% vs 0.8%), other goods, including other items and fuels (0.4% vs 0.1%), and services (4.3% vs 4%). On a monthly basis, consumer prices were unchanged in May, after rising 0.4% in the preceding period. Meanwhile, the annual core inflation rate, which excludes volatile items such as food and energy, slowed to 2% from 2.2% in April, below market forecasts of 2.3%.