Minister: Inflation drops “beyond expectations” in Hungary

Hungary’s annual consumer price index was 3.7 percent in June, the Central Statistical Office (KSH) said on Tuesday. Month on month, consumer prices were flat and food prices dropped by 0.3 percent.

Márton Nagy, the national economy minister, said the government’s targeted measures had reduced inflation “beyond expectations”. He said some of those measures, including the online price monitoring system, would boost retail competition and ensure low inflation in the long run.

Commenting on KSH’s figures, the minister said consumer prices in general had not changed from the previous month. Moreover, the price of food was 0.3 percent lower month on month.

The minister said low inflation had triggered “a positive chain reaction” in the economy that would increasingly benefit households and businesses alike. He said low inflation was reflected in increasing real wages and consumption, while retail trade has been on the up and up for the fifth month in a row.

Nagy also noted a dynamic increase in mortgage uptake, the portfolio having grown by 2.5 times in the first five months of 2024.

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