The Hungarian government has fulfilled its commitment to tackle inflation, achieving significant progress in 2023 and maintaining low rates throughout 2024. According to the Ministry of National Economy (NGM), inflation dropped to an average of 3.7 per cent in 2024 and is projected to decrease further to 3.2 per cent in 2025.
The ministry’s statement emphasized that sustained low inflation benefits both Hungarian families and businesses, creating a more stable economic environment. ‘The government is working to ensure the economy performs better so that families can manage their finances with greater ease,’ the statement read.
Hungary has witnessed over a year of continuous real wage growth, with retail sales expansion and record-breaking domestic tourism signaling a return of public confidence. In December 2024, inflation rose slightly to 4.6 per cent compared to the previous year, a temporary shift attributed to baseline effects, noted the ministry.
Official data from the Hungarian Central Statistical Office (KSH) reported that in 2024, food prices increased by 2.8 per cent, while household energy costs decreased by 4.6 per cent, and durable goods saw a 0.9 per cent decline in prices.
The government reaffirmed its commitment to measures that protect families and ensure fair competition in the retail sector, such as the online price monitoring system.
To further support families and enhance economic performance, the government has introduced a 21-measure economic action plan with a budget of 4000 billion forints. Of this amount, 2632 billion forints will directly benefit families, while the Sándor Demján Programme allocates 1410 billion forints to help domestic small and medium-sized enterprises (SMEs) achieve significant growth.
The ministry highlighted that inflation reduction has boosted the purchasing power of wages, fostering public trust and spurring economic activity. ‘The dynamic growth in retail sales and another record-breaking year for domestic tourism in 2024 illustrate the positive impact of these measures,’ the statement concluded.
With inflation expected to fall to 3.2 per cent in 2025, Hungary is on track to solidify economic stability. The government’s continued focus on targeted policies and financial support aims to ensure families and businesses thrive in the evolving economic landscape.
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