Food prices in Hungary continued to decline in September, even as the country’s overall inflation rate accelerated. The latest figures could also strengthen calls to phase out the controversial margin cap on food retailers.
Food prices down again
Hungary’s overall inflation rate rose to 1.6% in September, up from 1.3% in August, according to fresh figures from the Hungarian Central Statistical Office (KSH).
However, food prices continued to move in the opposite direction. Compared with September 2025, food prices were 1.3% lower, while excluding catering services, the decline was as much as 4.6%.
On a monthly basis, food prices also fell, decreasing by 0.1% compared with August. Excluding catering, the decline was 0.3%.
Several everyday food items became significantly cheaper over the past year. The price of canned meat fell by 26.7%, butter and butter spreads by 15.6%, fresh domestic and southern fruits by 14.4%, pork by 11%, cheese by 10.2% and sugar by 8.2%.
Milk prices fell by 8.1%, shop-bought coffee by 7.4%, eggs by 5.4% and poultry by 5.3%.
Some food prices still rising
The downward trend was not universal, however. KSH data show that some food products became more expensive over the past year.
Potatoes, for example, were 7.8% cheaper year-on-year, while espresso coffee and workplace subscription meals fell by 6.6%. However, prices for some other items continued to rise, including confectionery products and honey.
The monthly figures also show a mixed picture. Fresh vegetables became 2.5% more expensive between August and September, while pork rose by 2.1% and cooking oil by 1.5%.
At the same time, fresh domestic and southern fruits became 4.2% cheaper, potatoes fell by 4%, and margarine by 3.1%.
Have you heard? Hungarian food industry urges government to scrap price margin cap
Fuel prices pushed inflation higher
The rise in overall inflation was largely driven by vehicle fuel prices, according to Péter Virovácz, an analyst at ING Bank.
Fuel prices increased by 5.9% in a single month, which on its own added around 0.4 percentage points to monthly inflation. Since overall consumer prices rose by only 0.2%, Virovácz noted that prices across the rest of the consumer basket were lower overall, Telex reports.
Services, for example, became 0.5% cheaper compared with August, although they were still 4.9% more expensive than a year earlier. Household energy prices increased by 0.2% month-on-month, while tobacco products were unchanged.
Never miss a headline: join our Messenger group!
Could Hungary scrap the food margin cap?
The latest food-price figures could also add momentum to discussions about the future of Hungary’s food retail margin cap.
Prime Minister Péter Magyar said earlier this month that the government could consider phasing out the measure in light of low inflation and falling food prices.
The National Trade Association (OKSZ), which represents major retail chains, has also argued that the current decline in food prices provides a good opportunity to remove the margin cap.
According to the association, ending the measure would not necessarily lead to a significant increase in prices. Instead, retailers could once again compete more actively through larger discounts and promotional campaigns.
