Hungary Inflation Drops to 1.2 Percent in July

The Hungarian Central Statistical Office reported that consumer price inflation fell to 1.2 percent year-on-year in July, marking the lowest level since November 2016. This figure represents a moderation from the 1.7 percent rate recorded in June.

The decline was primarily driven by a 1.1 percent drop in food prices and a 4.3 percent decrease in fuel and power costs. Inflation for clothing and footwear also eased to 0.6 percent. Conversely, service inflation accelerated to 4.7 percent during the same period.

On a monthly basis, consumer prices dropped 0.1 percent in July. Core inflation also softened to a four-month low of 1.9 percent, down from 2.0 percent in June.