According to the latest report from the Hungarian Central Statistical Office (KSH), consumer prices in Hungary have risen an average of 4.4% in May compared to the same month last year.

This represents an increase from April, where consumer prices had grown by 4.2% year-on-year, indicating an upward inflation trend despite government-imposed price controls.

Within this overall average, food prices increased by 5.9%.

The KSH noted that excluding hospitality services, this figure drops to 4.5%.

Specific food items saw significant price increases: eggs by 26.0%, cooking oil by 25.3%, flour by 25.0%, coffee by 22.5%, chocolate and cocoa by 22.3%, fruit and vegetable juices by 14.1%, snack foods by 10.6%, non-alcoholic beverages by 8.4%, milk by 7.3%, and bread by 6.9%.

Conversely, some food categories experienced a decline, with margarine prices falling by 30.0%, dairy products by 7.4%, and cold cuts by 7.3%.

Service costs also escalated by 5.9%.

Notably, postal services increased by 11.3%, rent by 10.4%, vehicle repair and maintenance by 9.9%, and renovations by 9.9% as well.

Alcohol and tobacco prices rose by 7.3%, with the latter showing a 7.9% increase.

The report indicates that household energy costs rose by an average of 5.3%.

Specifically, the price of piped gas increased by 11.4%, while bottled gas rose by 6.8%.

Durable consumer goods also saw a rise of 2.2%, with jewelry prices up by 22.7%, while household furniture and new vehicles rose by 4.1% and 4.0%, respectively.

In contrast, used car prices decreased by 0.8%.

Fuel prices for vehicles fell by 4.8%, while the costs of pharmaceuticals and health products increased by 5.4%.

On a month-to-month basis, consumer prices have also seen an increase of 0.2% compared to April 2025. Food prices were up by 0.6%, driven by seasonal ingredients such as potatoes and fresh vegetables, which saw an average price rise of 1.6%.

Items such as chocolate and cocoa increased by 2.6%, coffee by 1.8%, snack foods by 1.2%, and pork by 1.0%.

Within food groups, eggs saw a decrease of 2.5% in price, while margarine and milk reduced by 2.2% and 0.9%, respectively.

The price of alcoholic beverages and tobacco rose by 0.9%, with tobacco prices alone climbing by 1.0%.

Household energy costs rose by 0.8%, highlighted by a 2.2% increase in piped gas and a decrease of 1.4% for bottled gas.

Service prices saw a slight decline of 0.1%, featuring a significant 2.2% decrease in telecommunications and internet services, though domestic tourism costs increased by 3.8%.

These developments come amid a government-imposed price ceiling on 30 food items that has been in effect since mid-March and was extended through the end of August.

As of May 19, price controls were also imposed on select drugstore products.

The National Trade Association (OKSZ) pointed out that despite the price caps, food prices increased by 0.6% from April to May. They reported that prices for products under the price cap had not increased since the end of April and in some cases had even decreased.

This situation indicates that retailers are not offloading their losses from price controls onto other products and are instead managing to maintain supplier prices established prior to the price ceilings.

However, the association warns that if the price caps are lifted at the end of May, suppliers may attempt to implement previously deferred price increases, complicating retail pricing strategies.

The Erste macroeconomic analyst noted that the inflation figures slightly exceeded expectations.

Core inflation, however, decreased to 4.8% year-on-year from 5.0% in April.

Analysts expect inflation to remain elevated for the remainder of the year barring significant economic improvement.

They also emphasized that administrative measures contributing to current inflation figures may introduce pressure back into the system once lifted.