The impact of the pass-through will be temporarily mitigated by price caps on motor fuels introduced in March, according to the Inflation Report.

Based on stock market futures prices, oil and gas prices may normalise by mid-2027, causing domestic inflation to return to the 3pc central bank "price stability" target in a sustained manner in H2 2027, the central bank staff said in the report.

The report puts average annual inflation at 3.8pc in 2026 and 3.7pc in 2027.

The report pointed to a moderate acceleration in GDP growth in Q4 2025 and forecast a continued pickup in 2026, albeit slowed by recent geopolitical events.

The NBH puts GDP growth at 1.7pc in 2026, driven by household consumption, and 3.0pc in 2027. While surging energy prices may slow growth on Hungary's export markets, new industrial capacity resulting from investments in recent years will boost exports, the report noted.

The NBH forecasts a modest 0.7pc-of-GDP current account deficit for 2026, as energy prices weigh, but augurs a 0.5pc surplus in 2027.

Source: MTI – Hungary’s national news agency since 1881. While MTI articles are usually factual, some may contain political bias, and readers should be aware that such content does not reflect the position of XpatLoop, which is neutral and independent.

Since the goal of XpatLoop is to keep readers well briefed, right across the spectrum of opinions, MTI items are shared to ensure readers are aware of all narratives within the local media.

XpatLoop believes in empowering readers to form their own views through complete and comprehensive coverage. To facilitate this XpatLoop has a balanced range of news partners, as you can see when you surf around XpatLoop.com
 

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