The annual inflation rate in Hungary edged down to 1.7% in June 2026 from 1.8% in the previous month, coming in below market expectations of 1.8%. The slowdown was driven by softer price increases for food (0.2% vs 0.5% in May), alcoholic beverages and tobacco products (3.1% vs 3.3%), consumer durables (1.9% vs 2.4%), and services (4.0% vs 4.3%). At the same time, household energy costs continued to decline, falling 2.3% after a 2.0% drop in the previous month. In contrast, inflation accelerated slightly for clothing items (1.4% vs 1.1%) and other goods, including fuels (1.1% vs 0.4%). On a monthly basis, consumer prices remained unchanged compared from the preceding period. Meanwhile, the annual core inflation rate, which excludes volatile items such as food and energy, stood at 2% in June, unchanged from the prior month.