Hungary Inflation Surges 4.4 Percent in May

(MENAFN) Consumer prices in Hungary jumped 4.4% in May 2025 compared to the same month last year, according to data released Wednesday by the Hungarian Central Statistical Office (KSH).

Month-on-month, inflation inched up by 0.2%, with rising costs for seasonal foods and services playing a central role in the uptick.

Food prices surged 5.9% year-over-year, matching the annual increase recorded for services. Notable contributors included rising postal charges, rental fees, and service repairs. Meanwhile, fuel prices offered some relief, dropping 4.8% from May 2024 levels.

The Ministry for National Economy linked the food inflation spike to seasonal agricultural products and hospitality-related items, especially fresh fruits and potatoes. In comments to a news outlet, the ministry underscored that “the government’s profit margin cap, limiting retailer markups to 10 percent on 30 essential food items, has helped curb cross-pricing and shield consumers in critical sectors.”

Macroeconomic expert Janos Nagy of Erste Bank pointed out that government policies remain a defining factor behind the current inflation trend. “The recent data is largely shaped by administrative measures, but any future economic rebound may create room for renewed price pressures,” he said.

Nagy projects Hungary’s average inflation rate for the year will hit 4.7%, significantly above the Hungarian central bank’s 3% target.

In a continued effort to combat inflation, the Hungarian government recently extended its food price margin cap through August 31. Initially launched in March, the policy has become a cornerstone of the country’s anti-inflation toolkit.

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