Hungary Inflation Rate YoY: November 2025 Analysis and Outlook
Key takeaways: Hungary’s November 2025 inflation rate held steady at 4.30% YoY, matching October’s figure and slightly below the 4.40% consensus estimate. This marks a significant moderation from early 2025 peaks above 5.50%. Core inflation pressures remain contained amid cautious monetary policy and fiscal restraint. External risks from energy prices and geopolitical tensions persist, but financial markets show calm. The outlook balances moderate inflation persistence with potential downside from slower growth and external shocks.
Table of Contents
Hungary’s inflation rate for November 2025 was reported at 4.30% year-over-year (YoY), unchanged from October and slightly below the 4.40% market consensus, according to the Sigmanomics database. This steady reading follows a downward trend from the early-year peak of 5.60% in March 2025, reflecting easing price pressures after a volatile first half.
Drivers this month
- Energy prices stabilized, contributing a neutral effect after prior months’ volatility.
- Food inflation remained moderate, around 3.50%, supporting headline stability.
- Services inflation edged up slightly, reflecting wage growth and domestic demand.
Policy pulse
The current inflation rate remains above the Hungarian National Bank’s 3% target but within a manageable range. The central bank has maintained a cautious stance, keeping key interest rates steady at 7.75% since September 2025 to balance inflation control and growth support.
Market lens
Immediate reaction: The Hungarian forint (HUF) showed mild appreciation against the euro, strengthening 0.15% in the first hour post-release. Short-term government bond yields held steady, reflecting market confidence in the inflation outlook.
Examining core macroeconomic indicators alongside inflation provides a fuller picture of Hungary’s economic health. GDP growth for Q3 2025 was revised slightly downward to 2.10% YoY, signaling moderate expansion. Unemployment remains low at 3.80%, supporting wage growth but also limiting labor market slack.
Monetary Policy & Financial Conditions
The Hungarian National Bank’s steady policy rate of 7.75% reflects a calibrated approach to inflation. Credit growth has slowed to 4.50% YoY, indicating tighter financial conditions. Inflation expectations, as measured by 5-year breakeven rates, hover near 3.50%, suggesting anchored medium-term inflation outlooks.
Fiscal Policy & Government Budget
Fiscal discipline remains a priority. The government’s budget deficit narrowed to 2.80% of GDP in Q3 2025, down from 3.50% a year earlier. Public spending growth slowed, particularly in subsidies and transfers, helping contain inflationary pressures.
External Shocks & Geopolitical Risks
Hungary faces ongoing risks from energy price volatility due to geopolitical tensions in Eastern Europe. While natural gas prices have stabilized recently, supply uncertainties could reignite inflationary pressures. Trade disruptions remain limited but warrant monitoring.
This chart signals a clear trend of inflation stabilization after a volatile first half. The persistence of a 4.30% rate over three months indicates a new inflation baseline, influenced by controlled energy prices and cautious monetary policy. The risk remains that external shocks could disrupt this equilibrium.
Market lens
Immediate reaction: EUR/HUF exchange rates dipped 0.20% following the release, reflecting slight optimism about inflation containment. The 2-year government bond yield remained near 6.10%, indicating steady market expectations for monetary policy.
Looking ahead, Hungary’s inflation trajectory depends on several key factors. The base case scenario assumes inflation will hover between 3.80% and 4.50% through mid-2026, supported by stable energy prices and moderate wage growth.
Scenario analysis
- Bullish (20% probability): Inflation falls below 3.50% by Q2 2026 due to stronger fiscal consolidation and easing global commodity prices.
- Base (60% probability): Inflation remains around 4.00%–4.50%, reflecting balanced monetary policy and moderate external pressures.
- Bearish (20% probability): Inflation rises above 5.00% if energy prices spike or geopolitical tensions escalate, forcing tighter monetary policy.
Structural & Long-Run Trends
Long-term inflation in Hungary has averaged near 3.50% over the past decade, with recent volatility linked to global shocks. Demographic shifts and productivity gains may gradually ease inflationary pressures, but wage growth and EU integration dynamics will remain key influences.
Hungary’s inflation rate of 4.30% YoY in November 2025 reflects a period of relative stability after earlier volatility. The interplay of cautious monetary policy, fiscal discipline, and external factors will shape the inflation path in the near term. Policymakers face the challenge of balancing inflation control with growth support amid uncertain global conditions.
Financial markets have so far responded calmly, but vigilance is warranted given geopolitical risks and commodity price uncertainties. Investors and policymakers should monitor inflation drivers closely to anticipate shifts in monetary stance and economic momentum.
Key Markets Likely to React to Inflation Rate YoY
Hungary’s inflation data typically influences currency, bond, and equity markets sensitive to interest rate expectations and economic growth. The following tradable symbols have shown historical correlations with inflation trends in Hungary:
- EURHUF – The euro-to-forint exchange rate reacts to inflation surprises and monetary policy shifts.
- BUD – Budapest Stock Exchange index reflects economic sentiment tied to inflation and growth.
- MOL – Hungary’s leading oil and gas company, sensitive to energy price-driven inflation.
- BTCUSD – Bitcoin often acts as an inflation hedge in emerging markets.
- USDHUF – The dollar-forint pair tracks inflation-driven monetary policy expectations.
Inflation Rate vs. EURHUF Exchange Rate Since 2020
Since 2020, Hungary’s inflation rate and the EURHUF exchange rate have shown a moderate inverse correlation. Periods of rising inflation often coincide with forint depreciation, reflecting market concerns over monetary tightening and purchasing power. For example, the inflation spike in early 2025 corresponded with a 5% depreciation of the forint against the euro. Stabilization of inflation at 4.30% has helped the forint regain some strength, underscoring the currency’s sensitivity to inflation dynamics.
FAQs
- What is the current inflation rate YoY in Hungary?
- The latest inflation rate for Hungary is 4.30% year-over-year as of November 2025.
- How does Hungary’s inflation compare historically?
- Inflation peaked at 5.60% in March 2025 and has since moderated to 4.30%, near the decade average of 3.50%–4.50%.
- What factors influence Hungary’s inflation rate?
- Key drivers include energy prices, wage growth, fiscal policy, and external geopolitical risks.
Final takeaway: Hungary’s inflation rate stabilization at 4.30% signals a cautious but manageable inflation environment, balancing internal and external pressures amid steady policy measures.
EURHUF – Key currency pair reflecting inflation and monetary policy in Hungary.
BUD – Budapest Stock Exchange index sensitive to economic growth and inflation.
MOL – Major Hungarian energy company impacted by inflation-driven energy prices.
BTCUSD – Bitcoin as an alternative inflation hedge in emerging markets.
USDHUF – Dollar-forint exchange rate tracking inflation and policy expectations.









Hungary’s inflation rate of 4.30% YoY in November 2025 matches October’s figure and remains below the 12-month average of approximately 4.70%. This stability contrasts with the sharp inflation spikes seen in early 2025, where rates peaked at 5.60% in March.
The chart below illustrates the steady decline from the spring highs, with a plateau forming over the last three months. This suggests that inflationary pressures have largely stabilized, supported by moderating energy costs and restrained fiscal expansion.