* Inflation lowest in nearly 3 years
* Durable goods prices show surprise fall (Updates with detail, quotes)
BUDAPEST, April 10 (Reuters) - Hungarian inflation slowed in March as prices of durable goods eased, the Central Statistical Office, KSH said on Friday.
Annual consumer price inflation
The March figure, the Hungary's lowest inflation rate since June 2006, fell as durable goods prices dropped by 1.2 percent on the month, despite expectations for an increase on the back of a weaker forint.
"In the first two months of the year, durable goods prices rose, most likely due to the weaker forint but in March there was a big drop," KSH statistician Borbala Minary said.
"This drop is due to car prices, particularly new car prices falling sharply. Several new models with a significant weight in the price basket were being sold at major discounts," Minary said.
Overall prices rose by 0.5 percent from the previous month
after a 1.0 percent rise in February while core inflation
A recent drug price hike could lift inflation in April but the outlook further down the road remains unclear as a planned value added tax hike was recently cancelled but could still come back into consideration, Minary said.
Inflation has fallen across central Europe in recent months as the region's economies either slid into recession or saw their growth rates sharply reduced in the global financial crisis.
The retreat in inflation has increased room for monetary easing but the sharp falls in the region's currencies have increased the prospect of higher import prices and could raise the risk of renewed price pressures.
(Reporting by Balazs Koranyi; Editing by Kim Coghill)