The annual inflation rate in Hungary edged up to 1.3% in August 2026 from 1.2% in July, which was the lowest reading since November 2016. The increase was largely driven by higher prices for alcoholic beverages, tobacco products (3.2% vs 2.9% in July), consumer durables (1.5% vs 1.8%), and other goods, including fuels (1.2% vs 0.3%). Inflation also picked up for services, rising 5% from 4.7% in the previous month. In contrast, costs declined for food (-1.4% vs -1.1%), clothing items (-0.2% vs 0.6%), and household energy (-4.3% vs -4.3%). On a monthly basis, consumer prices rose by 0.2%, rebounding from a 0.1% fall in the preceding period. Meanwhile, the annual core inflation rate, which excludes volatile items such as food and energy, ticked higher to 2% in August from 1.9% in the prior month.