Hungarian headline inflation slowed to an annual 7.9% in November from 9.9% in October, below analysts' expectations of 8.1%, the Central Statistics Office (KSH) said on Friday. Core inflation, slowed to 9.1% in November from 10.9% in October, in line with a 9.1% forecast in a Reuters survey. Prices were unchanged on average from the previous month, the KSH said.

Average inflation for 2022 was 14.5%. As of April 2021, the KSH no longer includes alcohol and tobacco prices in its core inflation figure. The National Bank of Hungary targets 3% headline inflation with a tolerance band of a percentage point on either side.

Food prices rose by 7.1% year-on-year, household energy prices fell by 18.1% after the government curtailed utility bill subsidies last year. Consumer durables prices decreased by 0.4%, with prices of new cars jumping 3.3%, while services prices rose by 12.6% in annual terms. INFLATION (% change) Nov 2023 Oct 2023 Nov 2022 Headline CPI m/m 0.0 -0.1 +1.8 Headline CPI y/y +7.9 +9.9 +22.5 Core CPI y/y +9.1 +10.9 +24.0 (Reporting by Anna Banacka and Marta Maciag in Gdansk)