Hungary's headline inflation rate ticked up to 8.6% year-on-year in June

The Central Statistical Office (KSH) said the core inflation – which strips away volatile fuel and food prices – also climbed, coming in at 5. 9% compared to 5. 7% in May.

Inflation began to climb last year after the government
introduced a series of measures aimed at cutting the nation's enormous budget
deficit, which at 9. 2% in 2006 was by far the largest in the European Union. Headline
inflation peaked at 9% in March, and then began what analysts believed would be
a steady downward climb. The central bank also saw this as a positive trend,
last month cutting the base interest rate by 25 basis points to 7. 75%.
Analysts, however, said the surprise rise gave no cause for concern.