The Ministry for National Economy (NGM) reiterated on Friday that the government remains committed to tackling unjustified price increases, following the release of July inflation data. According to the ministry, measures such as price margin reductions have led to significant decreases—food prices are down 20.3 percent and drugstore products by 26.1 percent.

The government’s intervention has not stopped at retail goods. Voluntary price restrictions were secured from banks, insurers, and telecom companies, and from 1 July, pharmaceutical firms joined with reduced pricing for 44 over-the-counter and prescription medicines. Pensioners will also receive targeted support in autumn with HUF 30,000 worth of food vouchers.

Citing Central Statistical Office data, NGM reported that overall annual inflation in July was 4.3 percent, with food inflation at 5.9 percent. The ministry noted that recent rises in seasonal produce prices were driven by weather-related supply disruptions, but affirmed that price monitoring will continue, especially in sectors subject to mandated margin cuts.

The government previously expanded the margin reduction policy to include household goods, cleaning products, and personal care items—moves that led to rapid and measurable price drops. “These steps provide substantial relief for Hungarian families,” the ministry said, adding that nearly 2,000 inspections had been carried out to ensure compliance in retail outlets.

NGM emphasized that direct financial support for pensioners will benefit 2 to 2.5 million individuals and further stimulate consumption. The ministry concluded that the combined impact of reduced prices and increased household spending will help drive renewed economic growth.