PRAGUE, May 27 (Reuters) -The Czech crown pulled back from 4-1/2 month highs on Monday in thin trading while others in central Europe hovered around multi-month peaks, with focus on U.S. and euro zone inflation data due this week keeping investors cautious.

Central Europe's currencies have been on a rally in recent weeks, boosted by a weaker dollar and improved risk appetite. At the same time, central banks in the Czech Republic and Hungary have toned down rate cut expectations.

The dollar was steady on Monday as global investors awaited key price data due this week to gauge the interest rate outlook in Europe and the United States. Trading on Monday was also thin due to holidays in Britain and the United States.

The crown EURCZK= retreated from the 24.60 per euro level which it had firmed toward late last week, trading 0.3% lower on the day at 24.74 to the euro by 0953 GMT.

A trader said the move prompted euro buyers back into the market. "I would say there was a common behaviour when people came back from weekend, it was good reason to buy EURCZK," the trader said.

There's scant local data to guide the market - before Czech gross domestic product data due at the end of the week.

Preliminary Polish inflation data on Friday will also be watched, although the country's central bank has been in a long pause since initial interest rate cuts last autumn.

Bank Millennium analysts said euro zone inflation data may give a bigger prompt for the zloty EURPLN=, which was 0.1% stronger at 4.253 per euro and was testing its four-year high of 4.25 hit last week.

"We do not believe that the (euro zone inflation) publication will change expectations regarding the June cut (in the euro zone), but it will shape the timing of further moves by the European Central Bank," it said.

In Hungary, the forint EURHUF= inched 0.2% down to 384.70, around its strongest since early February, while Romania's leu EURRON= was steady at 4.977 per euro.

Last week, Hungary's central bank cut borrowing costs, but signalled that scope for more easing would be "very, very limited" amid strong service sector repricing and other risks.

Reporting by Jason Hovet in Prague, Anna Wlodarczak-Semczuk in Warsaw, Boldizsar Gyori in Budapest; Editing by Emelia Sithole-Matarise

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