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Could inflation in Hungary hit single digits by December?
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The government has made a commitment to push inflation into the single digits before the end of this year which is still a realistic undertaking despite the difficulties, the head of the Prime Minister’s Office told a press briefing on Wednesday.
Inflation
“It might be achieved in November, but, as also suggested by forecasts, we can certainly deliver on this commitment by December,” said Gulyás, adding that “there are some worrying signs which are related primarily to the fact that fuel prices are now higher than they were before”.
He attributed the soaring fuel prices to the five-fold increase in the transit prices of fuel imported via Ukrainian pipelines.
“Fuel price increases in the past one month have alone increased inflation by half a percent,” he said.
Gulyás said that a European Commission ban imposed on Ukrainian grain imports in five neighbouring countries would expire on September 15 and if the EC does not extend the ban “we will be forced to introduce measures in national authority”.
“We are again asking the EC from here to understand the rationale behind the decision and extend the current import ban”, he said. It would be best to find a solution that meets the original goal which was to help African countries suffering from starvation instead of damaging European agricultural markets, he added.
Gulyás also said that there were serious debates about whether Ukrainian grain met European quality standards.
Instead of the 50 tonnes of Ukrainian grain imported to Hungary before the war, it was 3 million tonnes last year, he said. The Polish government has decided to introduce a similar measure if the EC does not extend the ban, he added.
Gulyás said that in response to calls by the ruling Fidesz group, the government has reassessed its earlier decision on solar panels. The government has decided that the new rules by Brussels must apply only to those who had submitted their applications to install solar panels after September 7.
Referring to the 5th Budapest Demographic Summit to be held on Thursday and Friday, Gulyás said Hungary had made significant progress in the area over the past decade but “we are not yet where we would like to be”.
In 2010, when the civic government of Hungary received its mandate to introduce new demographics policies, the total fertility rate (TFR) was 1.23 and it went up to 1.59 by the end of 2021. This represented a 25.6 percent increase, the largest in the EU over the past decade, he added. Had the previous trend not changed, some 160,000 children would not have been born between 2011 and 2021, he added.
Simple answer: NO. If it does not happen, our Politicians will obviously blame the EU. Or “Soros”. Or the Special Military Operation.
The inflation figure may come down, naturally. To single digits? Unlikely.
https://tradingeconomics.com/hungary/inflation-cpi
IMPOSSIBILITY.
The “Core” componentry of the Financial & Economic functionality in Hungary, indicators REMAIN heading in the WRONG direction.
Inflation will remain un-controlled in Hungary.
Nothing is GOING to Get Cheaper in Hungary.