The National Bank of Hungary raised borrowing costs to an 18-year high this week, taking the European Union’s highest interest rate to 11.75%. Policy makers vowed to tighten monetary conditions further, in contrast with other central banks in the region. The Monetary Policy Council of the National Bank of Hungary delivered yet another massive interest […]

Consumption growth was the most significant factor in the second quarter GDP growth figure of 6.5%, which exceeded expectations, with the tourism and logistics sectors leading the expansion. For the third quarter, analysts expect a significant contraction, the business news site napi.hu reports. In the first half of 2022, economic output was 7.3% higher than […]

Hungary’s currency, the forint, has brokern numerous negative records against the euro and the dollar in recent weeks. The trend in currency markets is similar across Central and Eastern Europe (CEE) due to the war in Ukraine and the related sanctions, the forint has staged the steepest fall in the region. What could put a […]

Hungary is battling the worst drought in more than a century. Agricultural losses run into the billions of forints and experts warn that in the absence of focused measures, the country is set to become a forest-steppe by the end of the century. No special research is necessary to see that Hungary is currently on […]

Consumer prices in Hungary were 13.7% higher on average in July 2022 than a year earlier and the highest in twenty-four years. The largest price rises were measured for food and consumer durables year-on-year. The seasonally adjusted so-called core inflation was 16.7%, one of the highest in Europe. In one month, consumer prices increased on […]

Looking back over the past 12 months, it seems that Hungarian shops have been hit by price rises in several waves. The first jump came at the end of last year, when annualized inflation suddenly jumped from 1-2% to around 10%, then from 10% to 20% in February-March this year, and in July the increase […]

45% of Hungarians are already having to give up some of their basic foodstuffs and household items because of price rises. Women, pensioners and people with primary education feel the effects of inflation the most, according to a survey conducted by Pulzus Research for the business news site Napi.hu. Inflation stood at 11.7% in June […]

Hungary's inflation would have been much worse than now, the highest in the EU, without state intervention, the Hungarian economic research company GKI reported. In May, Hungarian inflation was the ninth highest in the EU at 10.8%, and while all EU countries have yet to release their June figures, it is already known that Hungarian […]

In the current inflationary environment, 80% of Hungarians indicated that they are spending less to protect their current financial situation, with consumers cutting back on purchases of food and hygiene products in particular, the CEO of Magyar Cetelem Bank said at a press conference in Budapest on Wednesday, presenting the results of a survey conducted […]

The National Bank of Hungary surprised markets when it unexpectedly raised the key interest rate as monetary policy setters seek to put a floor under the sliding forint. In the face of double-digit inflation and massive wage increases, the central bank has to keep raising borrowing costs to keep Hungarian financial assets competitive. The National […]

In May, consumer prices were on average 10.7% higher in Hungary than a year earlier. Over the past year, food and consumer durables have seen the biggest price increases. Consumer prices rose by an average of 1.7 % in one month, the country's Central Statistical Office reports. In 12 months, compared to May 2021:A price […]

Hungary’s decision to levy extraordinary sectoral taxes is not the first time that Prime Minister Viktor Orbán resorts to unorthodox economic measures to prop up the budget. The announcement on Thursday triggered a selling wave on local financial markets, suggesting that investors are alarmed by the country’s return to economic unorthodoxy. Hungary will impose USD […]

Hungary’s incoming government faces some of the biggest economic challenges of the last decade as rampant energy prices may force it to abandon state-imposed price caps, while global disruptions are denting prospects for growth. The new Orbán government may again deploy unorthodox economic measures to guard fiscal stability and prop up the economic outlook. Prime […]

According to the GKI Economic Research Institute, the population perceived a 22% rise in prices, compared to the official inflation figure of 9.5% in April, which is partly due to statistical reasons, but partly to the observation methodology, the research institute told the state news agency MTI. The researchers stressed that the perception of the […]

The Hungarian government has decided to extend the price restrictions on fuel and certain food products until July 1, PM Viktor Orbán announced this Wednesday. He said in a video on social media that the government had discussed the issue of fuel and food prices at its meeting on Wednesday. He stressed that prices are […]