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HATC SAMPLE EDITION:
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8th October, 2026
September inflation below expectations
Annual inflation was 1.6% in September, up from 1.3% in August, but below analysts’ average forecast of 1.8%, the Central Statistics Office announced on Wednesday.
Compared to August, prices went up by 0.2%, on average.
Among the largest annual food price increases, in the preceding 12 months, potato prices soared by 7.8%, the price of coffee and catering at workplaces both rose by 6.6%, and cooking oil was 6.4% more costly than a year ago.
On the other hand, butter cost 15.6% less, fruit prices dropped by 14.4%, and pork was 11% cheaper. The price of sugar went down by 8.2%, and that of milk fell by 8.1%.
Household energy became 4% cheaper, including an 11% drop for pipeline gas and a 1.3% increase for electricity.
Core inflation – which excludes energy and seasonal foods – came to 1.9% year-on-year in September, down from 2% in August, and unchanged on a monthly basis.
Over the first nine months, the average inflation was 1.7% year-on-year.
According to analyst Peter Virovacz of ING Bank, if companies’ short-term inflation expectations remain anchored and the MNB’s new lowered inflation target of 2.5% increasingly becomes a benchmark, then further positive inflation surprises could well occur. (ksh.hu; portfolio.hu; economx.hu; 444.hu; telex.hu; mfor.hu)
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8th October, 2026
Budget Council flags risks to revised budget
The Budget Council has identified several risks to the government’s revised 2026 budget, including external economic and geopolitical tensions, higher energy prices and a severe domestic drought.
The budget deficit target has been raised from 3.7% to 7.5% of GDP, in line with the government’s July projection, following a large deficit at the start of the year and a weaker macroeconomic environment.
The central-government cash-flow deficit target has consequently risen to Ft 7,110.1 billion, of which Ft 3,382 billion had been recorded in the first half.
The council welcomed the formal inclusion of the higher deficit target in legislation, saying this would improve transparency in assessing fiscal performance.
Economic growth is now expected at 2.0%, compared with the original 4.1% target, although stronger real household wages and consumption provide some offset.
Public debt stood at 75.6% of GDP at the end of the first half and could rise to 77.5% by year-end as the wider deficit and higher liquidity reserves add to borrowing needs. The impact is partly cushioned by the stronger forint against the euro.
The government is due to submit a new medium-term budgetary and structural plan in October, in which it must commit to a path of gradually lower deficits and a declining public debt to GDP ratio, the council advised. (portfolio.hu; novekedes.hu; mfor.hu; economx.hu)
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8th October, 2026
Szeged invites designs for urban renewal project
Szeged has launched a design tender for the comprehensive renewal of the city’s northern districts, with the Ft 1.36 billion, partly EU-funded project aimed at improving green spaces, community areas and infrastructure, Magyar Epitok reported.
A central element will be sustainable stormwater management: runoff from paved surfaces and roofs will be channelled into green areas and retained locally rather than discharged immediately.
Technical proposals are due by November 12, with the urban-rehabilitation project scheduled for completion by the end of April 2029. (portfolio.hu)
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