The annual inflation rate in Hungary slowed to 1.2% in July 2026 from 1.7% in the previous month, marking the lowest reading since November 2016. The slowdown was largely driven by declines in prices for food products (-1.1% vs 0.2%) and household energy (-4.3% vs -2.3% in June). At the same time, price growth softened alcoholic beverages, tobacco products (2.9% vs 3.1%), clothing items (0.6% vs 1.4%), consumer durables (1.8% vs 1.9%), and other goods, including fuels (0.3% vs 1.1%). On the other hand, inflation accelerated for services, climbing 4.7% from 4% in the prior month. On a monthly basis, consumer prices fell by 0.1%, after remaining unchanged for the past two months. Meanwhile, the annual core inflation rate, which excludes volatile items such as food and energy, edged up to 1.9% in July from 2% in the preceding period.