Hungary will hike pensions in November to offset higher-than-expected inflation which will cost 190 billion forints ($508.29 million) to the state budget, the Prime Minister's Chief of Staff told a conference on Thursday.

Hungary's annual inflation peaked at above 25% in the first quarter. The pension hike comes at a time when the government is reviewing this year's budget. The central bank projects the deficit will overshoot the target of 3.9% of GDP. ($1 = 373.8000 forints) (Reporting by Boldizsar Gyori and Krisztina Than)