FX.co ★ Hungary Inflation Eases Unexpectedly To 3.7%

In a surprising turn, Hungary's inflation eased in June following increases over the previous two months, as reported on Tuesday by the Hungarian Central Statistical Office.

Consumer prices saw a year-on-year rise of 3.7 percent in June, down from the five-month high of 4.0 percent recorded in May. This contrasts with economists' expectations that inflation would hold steady at 4.0 percent.

Despite this moderation, inflation still exceeded the central bank's target of 3.0 percent.

Core inflation, however, experienced a slight uptick, reaching 4.1 percent from a 32-month low of 4.0 percent observed the previous month.

Costs for clothing and footwear rose by 4.1 percent, a deceleration compared to the 4.7 percent increase in May.

Data indicated that utility costs continued their downward trend, declining by 2.7 percent. In contrast, food price inflation saw a modest increase, rising to 1.1 percent from 1.0 percent.

On a month-on-month basis, consumer prices remained unchanged in June, following a 0.1 percent decrease in the preceding month.