The Hungarian National Bank (MNB) is lowering its medium-term inflation target from the current 3.0% to 2.5%. The new, lower target is in line with regional practice and is closer to the European Central Bank’s (ECB) inflation target. The 2.5% target reflects the country’s economic development and is more likely to meet the Maastricht criteria. The government aims to fulfil the conditions for euro adoption by 2030.
The lower inflation target helps preserve purchasing power and increases the real value of savings. In the longer term, it is compatible with lower nominal interest rates, which in turn contribute to higher consumption and increased investment.
The 2.5% inflation target will take effect as part of monetary policy on January 1, 2028.
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