NGM: we always take action against unjustified price increases, inflation may decrease further in the coming months

The decline in inflation may continue in the coming months, which is supported by several important factors: the margin reduction introduced for 30 food product categories on March 17 and its extension to household goods for 30 product categories from May 19, as well as the freezing of account fees of financial institutions, fees of telecommunications companies, and home insurance premiums of insurers.

The announcement states that, based on data from the Central Statistical Office (KSH), inflation continued to decline in April, falling to 4.2 percent year-on-year, while showing no significant change compared to March. Food inflation fell to 5.4 percent year-on-year. Compared to the previous month, food prices decreased by an average of 1.3 percent.

The unjustifiably high price increases necessitated intervention, so the government introduced a margin cut to protect the Hungarian population, especially families and pensioners. According to the latest data, the price of 905 products decreased by an average of 19.3 percent as a result of the margin cut introduced on March 17. Within this, 24 products have seen a price reduction of over 50 percent, 105 products of 40-50 percent, 141 products of 30-40 percent, 173 products of 20-30 percent, and 213 products of 10-20 percent, the Ministry of Agriculture and Rural Development stated.

The government’s steps have resulted in a rapid, lasting and substantial price reduction. The largest price reduction can be observed in the case of dairy products, with the Hungarian population currently able to purchase lactose-free natural yoghurt by 36.7 percent, natural yoghurt by 29.5 percent, lactose-free Trappist cheese by 28.9 percent, and lactose-free milk by 24.7 percent.