Hungary’s retail sales climb 4.8% as inflation eases and industrial output rebounds

The Central Statistical Office (KSH) reported that Hungary’s total retail turnover in May 2026 rose 4.8% year‑on‑year after calendar‑adjustment. Food‑related mixed stores grew 3.2%, non‑food retail 7.4% and fuel stations 8.4%. Online and parcel‑delivery sales surged 15%.

Inflation continued to fall, reaching 1.7% in June – the second consecutive month below the central bank’s tolerance band – after a May rate of 1.8% and an April peak of 2.1%. Analysts expect further cuts to the benchmark rate and an early removal of the price‑margin caps.

Industrial production showed a solid rebound: the seasonally‑adjusted index rose 5.4% in May, the strongest gain since mid‑2022, despite a 0.4% decline on a raw‑data basis. Growth was driven mainly by electronics and automotive manufacturing.

In the fisheries sector, total pond‑farm output fell 9.7% in 2025, but intensive aquaculture – especially African catfish – is projected to drive future growth as new pond construction stalls.

The European Commission’s convergence report criticised the legal loopholes that allow members of the Magyar Nemzeti Bank’s Monetary Council to hold positions in MNB‑linked foundations without transparency, urging Hungary to amend the law to restore central‑bank independence.