Consumer prices in Hungary climbed 3.1% in July from the same month a year earlier, slowing from a 3.5% increase in June, the Central Statistics Office said in the morning. Analysts had put the headline figure at 3.3%-3.5%.
Zoltan Arokszallasi of Erste Bank attributed the lower CPI to food prices.
Although food prices were up 5.4% year-on-year in July, they fell 1.2% month-on-month.
Mr Arokszallasi said inflation would probably pick up in August because of sharp drop in food prices in the base period and he put year-on-year inflation in December at 3.2%.
Food prices fell 1.9% month-on-month in August 2010.
MKB Bank' chief analyst Zsolt Kondrat also put the lower CPI in July down to food prices. He said that the month-on-month drop in food prices in August 2010 was unlikely to be matched in August of this year.
Mr Kondrat put year-end CPI at 3.3%.