Hungarian inflation at its lowest in ten years

According to the flash report of the Central Statistical Office (Központi Statisztikai Hivatal-KSH), consumer prices in Hungary were, on average, 1.2 percent higher in July than in the same month of the previous year. The report also notes that prices fell by 0.1 percent compared to June of this year. Compared with July 2025, however, consumer food prices fell by 1.1 percent, and retail prices were down 4.4 percent.

Compared with June of this year, consumer food prices fell by an average of 1 percent, and retail prices were 1.7 percent lower. Prices for services have increased by an average of 1.6 percent. The price of household energy fell by 0.9 percent; within this category, the price of piped gas fell by 1.5 percent, electricity by 0.2 percent, while central heating prices remained unchanged. Fuel became 1.3 percent cheaper, and clothing became 2.1 percent cheaper.

After the data was released, Prime Minister Péter Magyar posted that inflation had fallen to a level that had not been seen in 10 years. According to his post, this was the first time in a long time that grocery prices had decreased in Hungary. Portfolio has pointed out that Hungary has not seen such a low rate of price increases since the end of 2016.

According to the National Trade Association (Országos Kereskedelmi Szövetség-OKSZ), the 4.4 percent price decrease in what is perhaps the most important product category for the general public is a more favorable figure than anyone expected to see. The body states that the price-margin caps (introduced by the previous government in May 2025) have not played any role in shaping food prices since May; the current numbers are solely the result of favorable trends in both domestic and international markets, as well as the forint's exchange rate, which more than offset the increases stemming from rising energy costs.

According to the OKSZ, conditions are now favorable for phasing out the price-margin cap, which was introduced by the Orbán government. The organization believes this would have numerous benefits for consumers: promotions offering substantial discounts would return, the range of goods and the quality of service would improve, and, thanks to long-delayed investments, store interiors could also be upgraded.