20 October 2026
The Monetary Council of the Magyar Nemzeti Bank, Hungary's central bank, left the central bank base rate unchanged at 5.50 per cent at its meeting of 20 October 2026. The new interest rate conditions took effect on 21 October 2026. The overnight central bank deposit rate stays at 4.50 per cent, one percentage point below the base rate, and the overnight collateralised loan rate stays at 6.50 per cent, one percentage point above it. These two rates form the interest rate corridor. The Council noted that inflation was 1.6 per cent in September and core inflation 1.9 per cent, and forecast an annual average of 1.8 per cent for 2026 and 3.1 per cent for 2027. It said maintaining the current interest rate conditions is necessary to achieve the inflation target in a sustainable manner. Abridged minutes of the meeting are to be published on 4 November 2026.
Central bank base rate:
5.50%
O/N deposit rate:
4.50%
O/N collateralised loan rate:
6.50%
Effective from:
21 October 2026
Why it matters for exams: Magyar Nemzeti Bank is Hungary's central bank and its Monetary Council sets the base rate — central banks and their rate-setting bodies are standard Economy questions.
Kerala PSCUPSC
In plain words
MNB Magyar Nemzeti Bank — The central bank of Hungary, based in Budapest.
20 October 2026
The Monetary Council of the Magyar Nemzeti Bank has reviewed Hungary's inflation target and set it at a 2.5 per cent annual rise in the consumer price index published by the Hungarian Central Statistical Office. The Council kept the symmetric tolerance band of plus or minus 1 percentage point around the target. The new target comes into effect on 1 January 2028. In its press release on the Monetary Council meeting of 20 October 2026, the central bank repeated that inflation is expected to return to the 2.5 per cent target by the end of the forecast horizon, with the annual average put at 1.8 per cent for 2026 and 3.1 per cent for 2027.
Inflation target:
2.5%
Tolerance band:
±1 percentage point
Effective from:
1 January 2028
Why it matters for exams: Inflation targeting, the tolerance band and the body that sets the target are standard Economy questions.
Kerala PSCUPSC
In plain words
CPI Consumer Price Index — The price index the inflation target is measured against.
20 October 2026
The Court of Justice of the European Union has upheld the European Commission's action against Hungary in Case C-521/25, Commission v Hungary, and held that Hungary failed to fulfil its obligations under European Union law. A Hungarian decree of 2023 had converted final custodial sentences for trafficking in human beings into a form of special reintegration detention. The Court held that this does not meet the requirement that penalties be effective, dissuasive and proportionate. The decree was repealed on 19 August 2025. The judgment was reported in press release No 150/26 of the Court, dated 15 October 2026. The Court of Justice of the European Union sits in Luxembourg and rules on whether member states have met their obligations under the Treaties.
Case:
C-521/25 Commission v Hungary
Press release:
No 150/26
Decree repealed:
19 August 2025
Why it matters for exams: The Court of Justice of the European Union, its seat at Luxembourg and infringement actions brought by the European Commission are standard International and Law questions.
Kerala PSCUPSC
In plain words
CJEU Court of Justice of the European Union — The European Union's court, seated in Luxembourg.
23 October 2026
European Commission President Ursula von der Leyen and European Council President Antonio Costa travelled to Budapest for the commemoration marking the 70th anniversary of Hungary's 1956 anti-Soviet uprising, which began on 23 October 1956. Hungarian Prime Minister Peter Magyar hosted the event, held on Friday 23 October 2026. It is von der Leyen's first trip to Hungary since 2024. Magyar's government has named Russia as a security threat and has approved the opening of four negotiating clusters in Ukraine's European Union accession talks. 23 October is a national day in Hungary.
Anniversary:
70th
Uprising began:
23 October 1956
European Commission President:
Ursula von der Leyen
European Council President:
Antonio Costa
Why it matters for exams: The 1956 Hungarian uprising, the office of President of the European Commission and the office of President of the European Council are all standard questions.
Kerala PSCUPSC
27 October 2026
The Hungarian Central Statistical Office reports that consumer prices in Hungary were 1.6% higher on average in September 2026 than a year earlier. Compared to August, prices were up by 0.2%. Food prices decreased by 1.3% over twelve months, within which the price of canned meat lessened by 26.7%, that of butter by 15.6% and the price of pork by 11.0%. Services became 4.9% more expensive, and alcoholic beverage and tobacco prices rose by 3.3%. The Magyar Nemzeti Bank cited the same 1.6% figure, with core inflation at 1.9%, when it held the central bank base rate at its October meeting.
Consumer prices, September 2026:
1.6% higher
Compared to August:
up by 0.2%
Food prices:
decreased by 1.3%
Services:
4.9% more expensive
Why it matters for exams: The Hungarian Central Statistical Office is the publisher of Hungary's inflation figures, and the forint is Hungary's currency.
Kerala PSCUPSC
In plain words
HCSO Hungarian Central Statistical Office — Hungary's national statistics office, known in Hungarian as Központi Statisztikai Hivatal (KSH).
27 October 2026
The Hungarian Central Statistical Office reports that the volume of Hungary's gross domestic product was 1.7% higher in the 2nd quarter of 2026 than in the corresponding period of the previous year, according to both raw data and seasonally and calendar adjusted and reconciled data. Compared to the previous quarter, economic performance rose by 0.5% on seasonally and calendar adjusted and reconciled data. In the first half of the year performance was 1.7% higher than in the same period of the previous year. On the production approach, the value added of agriculture was 12.4% lower than in the corresponding period of the previous year. The figures are from the second estimate, published on 1 September 2026.
GDP, 2nd quarter 2026 year on year:
1.7% higher
Compared to the previous quarter:
rose by 0.5%
Value added of agriculture:
12.4% lower
Why it matters for exams: GDP, the office that publishes it and the meaning of gross domestic product are standard Economy questions.
Kerala PSCUPSC
In plain words
HCSO Hungarian Central Statistical Office — Hungary's national statistics office, known in Hungarian as Központi Statisztikai Hivatal (KSH).
GDP Gross Domestic Product — The total value of goods and services produced within a country in a period.
27 October 2026
The Hungarian Central Statistical Office reports that in August 2026 the average number of employed persons aged 15 to 74 in Hungary was 4 million 654 thousand. The number of unemployed persons was 229 thousand and the unemployment rate stood at 4.7%. In the period June to August 2026 the average number of employed persons aged 15 to 74 was 4 million 655 thousand, 24 thousand fewer than a year earlier, the average number of unemployed people rose to 235 thousand and the unemployment rate rose to 4.8%. Among people aged 15 to 64 the employment rate was 75.4%, made up of 78.9% for men and 71.9% for women. The average duration of job search was 11.7 months.
Employed persons, August 2026:
4 million 654 thousand
Unemployed persons, August 2026:
229 thousand
Unemployment rate, August 2026:
4.7%
Unemployment rate, June-August 2026:
4.8%
Employment rate, 15-64:
75.4%
Why it matters for exams: The Hungarian Central Statistical Office is the publisher of Hungary's labour force figures, a body often asked about.
Kerala PSCUPSC
In plain words
HCSO Hungarian Central Statistical Office — Hungary's national statistics office, known in Hungarian as Központi Statisztikai Hivatal (KSH).
27 October 2026
The Hungarian Central Statistical Office reports that the volume of industrial production in Hungary increased by 8.7% year-on-year in August 2026. According to seasonally and working-day adjusted data, industrial output was 1.0% higher than in July 2026. The volume of industrial export was 15.7% higher than a year earlier and domestic sales of industry rose by 0.6%. The overall increase was primarily due to the manufacture of transport equipment and the manufacture of computer, electronic and optical products. In a separate release the office reports that construction output volume in August 2026 was 21.9% higher than a year earlier, with output in the construction of buildings down 9.6% while civil engineering doubled, increasing by 102.4%. Industrial producer prices in August 2026 were 4.8% higher on average than a year earlier.
Industrial production, August 2026:
increased by 8.7%
Industrial export volume:
15.7% higher
Construction output:
21.9% higher
Civil engineering:
increased by 102.4%
Industrial producer prices:
4.8% higher
Why it matters for exams: The Hungarian Central Statistical Office publishes Hungary's industrial and construction output series.
Kerala PSCUPSC
In plain words
HCSO Hungarian Central Statistical Office — Hungary's national statistics office, known in Hungarian as Központi Statisztikai Hivatal (KSH).
27 October 2026
The Hungarian Central Statistical Office reports that in August 2026 nearly 2.6 million guests spent 6.9 million tourism nights at tourist accommodation establishments in Hungary, which include commercial, private and other establishments. Tourist arrivals were down by 7.3% and tourism nights by 5.8% in number compared to a year earlier. The number of domestic tourist arrivals decreased by 2.5% and that of domestic tourism nights by 2.8%. The number of international tourist arrivals decreased by 13% and that of international tourism nights by 9.3%. Domestic arrivals were 8.1% higher in Budapest and 3.6% lower at Lake Balaton. In January to August 2026 domestic arrivals were 1.0% higher than a year earlier while international arrivals declined by 2.9%. Lake Balaton is the largest lake in Central Europe and lies in Transdanubia, west of the Danube.
Tourism nights, August 2026:
6.9 million, down by 5.8%
Tourist arrivals:
nearly 2.6 million, down by 7.3%
International tourist arrivals:
decreased by 13%
Domestic arrivals, Lake Balaton:
3.6% lower
Why it matters for exams: Lake Balaton and Budapest are the fixed geography points here, and the Hungarian Central Statistical Office is the publisher.
Kerala PSCUPSC
In plain words
HCSO Hungarian Central Statistical Office — Hungary's national statistics office, known in Hungarian as Központi Statisztikai Hivatal (KSH).
27 October 2026
The Hungarian Central Statistical Office reports that in August 2026 the volume of retail trade in Hungary, in both raw and calendar-adjusted data, was 2.4% higher than in the same month of the previous year. According to seasonally and calendar-adjusted data the volume of retail sales was 0.7% down on the previous month. Calendar-adjusted sale volumes expanded by 0.5% in specialized and non-specialized food shops, by 5.0% in non-food retailing and by 3.1% in automotive fuel retailing. In January to August 2026 the volume of sales was 4.3% higher than in the corresponding period of the previous year.
Retail trade volume, year on year:
2.4% higher
Retail sales, month on month:
0.7% down
Non-food retailing:
5.0%
Why it matters for exams: The retail sales volume index and the office that publishes it are standard Economy questions.
Kerala PSCUPSC
In plain words
HCSO Hungarian Central Statistical Office — Hungary's national statistics office, known in Hungarian as Központi Statisztikai Hivatal (KSH).
Background
Hungary joined the European Union on 1 May 2004. Its capital is Budapest and its currency is the Hungarian Forint, abbreviated HUF. Hungary has not adopted the euro and is preparing to do so, which is why the Magyar Nemzeti Bank still sets its own central bank base rate instead of following the European Central Bank. Hungary has been a member of the Schengen area since 21 December 2007 and sends 21 members to the European Parliament. The country covers 93,012 square kilometres and its population was 9,488,428 in the 2026 Eurostat figures. Hungary is a parliamentary republic in which the prime minister is the head of government and holds executive power, while the president is the head of state with mainly representative duties.
EU accession:
1 May 2004
Currency:
Hungarian Forint (HUF)
Schengen:
21 December 2007
Seats in the European Parliament:
21
Area:
93,012 km²
Why it matters for exams: Hungary's EU accession year, its currency and its Schengen membership are standard International questions.
Kerala PSCUPSC
In plain words
HUF Hungarian Forint — The currency of Hungary, issued by the Magyar Nemzeti Bank.
Background
Hungary has eight properties inscribed on the UNESCO World Heritage List. They include Budapest, including the Banks of the Danube, the Buda Castle Quarter and Andrassy Avenue; the Tokaj Wine Region cultural landscape; the Ferto / Neusiedlersee Cultural Landscape, which Hungary shares with Austria; the Caves of Aggtelek Karst and Slovak Karst, shared with Slovakia; and Hortobagy National Park, the Puszta, on the Great Hungarian Plain. Hungary accepted the World Heritage Convention on 15 July 1985. The World Heritage List is maintained by the United Nations Educational, Scientific and Cultural Organization.
Inscribed properties:
8
Convention accepted:
15 July 1985
Why it matters for exams: UNESCO World Heritage properties and the body that maintains the List are frequent Art and Culture questions.
Kerala PSCUPSC
In plain words
UNESCO United Nations Educational, Scientific and Cultural Organization — The United Nations agency that maintains the World Heritage List.