Thanks to low prices, the future has become more calculable for families and enterprises: according to the latest report by the Hungarian Central Statistical Office (KSH), in July 2015 consumer prices remained unchanged month-on-month, while in the initial seven months of 2015 they were down by 0.3 percent year-on-year.

Following 0.6 percent growth recorded in June, the year-on-year price increase slowed to 0.4 percent in July. This trend has been mainly the consequence of the third round of public utility price cuts and low oil prices. However, the price index has also been under pressure due to the deflationary environment in Europe and the effect of the Russian embargo.

Lower prices have resulted in higher wages and pensions in real terms; therefore they are boosting household disposable incomes which trend is expected to lead to an economic and consumption boom. This means that thanks to lower oil prices consumers spend a smaller part of their income on fuels and they either purchase more consumer goods or add more to their savings.

For the whole year, the inflation rate is expected to remain flat.

(Ministry for National Economy)