Inflation was last as low as in February 2026 back in 2016. In February this year, consumer prices were on average 1.4% higher than a year earlier, while they increased by an average of 0.1% compared to the previous month, according to data from the Hungarian Central Statistical Office.
Food prices remained unchanged for the second consecutive month. Household energy prices fell by 1.7%. After standing at 3.3% at the end of last year and 2.1% in January, the inflation rate has now dropped to 1.4%, reaching the lower end of the target range set by the Hungarian National Bank.
In February, the Hungarian National Bank cut its base interest rate by 25 basis points to 6.25% for the first time in one and a half years. The market had already priced in another rate cut for March, but this has now become uncertain in light of the Iran war.