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The headline rate of CPI-inflation fell marginally in June, to 1.7% yoy from the previous month’s 1.8%, defying analyst and MNB expectations of a small rise, to 1.9-2%. It looks lüke the strong forint is indeed very powerful, whereas normalising energy prices and the global food price cycle are a...

Leaving for a summer holiday risks missing a number of important events in today's Hungary

HUNGARY · In Brief · 03 Jul 2026

In hindsight, PM Magyar appears to have been right when he said that no one in Hungary's public service should plan a long holiday this summer. Returning from our own ten-day leave, we found an impressive list of important changes, which were the following: 1. The MNB base rate was reduced by 25 ...

A revolt at the Constitutional Court - against the Fidesz-appointed President of the Republic

HUNGARY · In Brief · 21 Jun 2026

PM Magyar has announced this afternoon that tomorrow, on Monday, June 22, the government is going to hand in to parliament its proposal to amend the Constitution once again, this time with a view to removing from office President Sulyok and seven other constitutionally independent but heavily Fid...

The government proposes to end 'protected prices' on fuels

HUNGARY · In Brief · 18 Jun 2026 · 1 response

It seems Mr. Trump's latest intermediate peace deal with Iran plays to the hands of the new government of Hungary, through its beneficial impact on global energy prices. Last night, PM Magyar announced that his government is proposing to end the existing system of 'protected' retail fuel prices, ...

RRF funds to arrive in late 2026

HUNGARY · Report · 15 Jun 2026

In late May, the new government reached a political agreement with the EU Commission on the conditional release of nearly all of the so-far-blocked EU funds. Further efforts to actually receive the money will focus on the RRF, where an extraordinarily high time pressure remains. Here, conditions ...

Likely base rate cut in June, further major progress towards meeting conditions for EU funds

HUNGARY · Report · 10 Jun 2026

Our regular readers are most probably fully aware that we have long been hesitating to join the rapidly increasing camp of macro analysts who predict an early reduction of the MNB base rate. However, yesterday's release of the CPI-inflation data for May has changed our view in this regard. Analys...

Likely base rate cut in June, further major progress towards meeting conditions for EU funds

HUNGARY · In Brief · 10 Jun 2026

Our regular Readers are most probably fully aware that we have been hesitating for long to join the rapidly increasing camp of macro analysts who predict an early reduction of the MNB base rate. However, yesterday's release of the CPI-inflation data for May has changed our view in this regard. An...

Theft and waste of public money: another source of fiscal adjustment

HUNGARY · In Brief · 09 Jun 2026

The following story is published here to demonstrate that EU money is not the only, and perhaps not even the main, possible source of fiscal adjustment in Hungary, and to contribute to the explanation of why the Tisza government is not starting its operation by raising taxes and/or reducing spend...

PM Magyar in Berlin, Paris and the MNB headquarters

HUNGARY · In Brief · 03 Jun 2026

Immediately after his early Monday visit at the residence of President Sulyok, and the subsequent announcement that Tisza will seek the removal of eight constitutionally independent top public officials, including the President, PM Magyar went over to the MNB headquarters, to see Governor Varga t...

'Fidesz-puppets' to be sacked in about a month, PM Magyar claims

HUNGARY · In Brief · 01 Jun 2026

On May 31, the deadline set by PM Magyar for eight constitutionally independent top public officials to step down voluntarily expired. They include the President of the Republic, the Prosecutor General and the heads of the Constitutional Court, the Supreme Court, the National Bureau for the Judic...

€16.4bn of EU funds to Hungary now conditionally unblocked

HUNGARY · In Brief · 30 May 2026 · 1 response

This was announced at a press conference held by Mme von der Leyen and PM Magyar on Friday, May 29. Of the total amount, €12.9bn represents grants and a further €3.5bn represents low-cost loans. Prior to this announcement, a total of €17.6bn was known as being blocked, so not all, but most of the...

No change from the MNB and Moody's, difficult talks with EU continue, and further steps are made towards democracy

HUNGARY · In Brief · 26 May 2026

Really a lot is happening in these days. Today, the MNB kept the base rate unchanged at 6.25%. The Council discussed a hold and a rate cut scenario, Mr. Varga said after the meeting, and there was (were?) also vote(s?) supporting a rate reduction as well. Positives observed by the Council include...

Tisza has taken over in a normal way, with no disruptions

HUNGARY · Report · 21 May 2026

Tisza had set up its government cabinet and taken over the administration by early May, which represents record high speed historically. No extraordinary events or disruptions occurred, despite earlier widespread fears that Fidesz could hesitate to transfer power. However, Tisza’s takeover has...

The new government has effectively started fiscal adjustment

HUNGARY · In Brief · 17 May 2026

This year's fiscal deficit (by Eurostat definition) is officially expected to reach 6.8% of GDP, against the original 3.7% target, which was amended later to 4.5% and then even later to 5%. This is not an estimate from the new Finance Ministry; it is the estimate with which the outgoing economy m...

Dr. Carter is going home tonight (and some other timely updates)

HUNGARY · In Brief · 13 May 2026

Dr. Carter (see picture below) is a fictional character from the once world famous television series ER (Emergency Room), of course, arguably the favourite of that show among the Hungarian audience. What makes mentioning him timely today is that Hungary has also had its own ER series over the pas...