BUDAPEST, June 11 (Xinhua) -- Consumer prices in Hungary rose by 4.4 percent year-on-year in May 2025, according to data released Wednesday by the Hungarian Central Statistical Office (KSH).
On a monthly basis, inflation edged up 0.2 percent, with seasonal food products and service costs contributing significantly to the rise.
Food prices climbed 5.9 percent compared to May 2024, while services also posted a 5.9 percent annual increase. Key drivers included higher postal fees, rental prices, and repair costs. In contrast, motor fuel prices fell by 4.8 percent year-on-year.
The Ministry for National Economy attributed the surge in food inflation primarily to seasonal produce and hospitality-related services, notably fresh fruits and potatoes. In a statement to Xinhua, the ministry emphasized 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 analyst Janos Nagy of Erste Bank noted that while base effects may constrain any significant drop in inflation before autumn, the latest figures highlight the influence of government interventions. "The recent data is largely shaped by administrative measures, but any future economic rebound may create room for renewed price pressures," he said.
Nagy forecasts Hungary's average annual inflation rate will reach 4.7 percent in 2025, well above the central bank's 3 percent target.
As part of its broader anti-inflation strategy, the Hungarian government recently extended the food margin cap until Aug.31. First introduced in March, the measure has become a key pillar in efforts to contain inflation. ■
