There's terrific shopping in Budapest -- at all manner of venues. Among the most popular souvenirs: hot or sweet paprika, the national spice; dried salami; Tokaji wine; Herend porcelain; cut glass; Helia, a facial cream made from the extract of sunflower seeds; embroidery; and Unicum, an herbal digestive sold in a distinctive round, black bottle with a red cross on it. As they say in Hungary, "It is good before, after and the day after."
Vaci Utca is a wonderful pedestrian shopping street filled with gift shops, galleries, jewelers and boutiques. Also not to miss: a covered farmer's market at the foot of Liberty Bridge on Vamhaz Korut at Vaci Utca's southern terminus. It's in an unmistakable building that looks like a railroad station with a yellow, green and red roof. Locals go there to buy groceries, but it's also loaded with inexpensive souvenirs. Many of the market vendors accept U.S. dollars and euros (the local currency is the Hungarian forint), but ask first to be sure.
During the holiday season, you'll find an outdoor Christmas market in Vorosmarty Square, just off of Vaci Utca.
Typically, shops open around 10 a.m. and close at 6 p.m. Many businesses close at 1 p.m. on Saturdays.