Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Hungarian consumer confidence plunges as inflation surges

EconomyNov 21, 2021 06:25PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Hungarian forint and Euro notes are seen in this photo illustration taken in Budapest February 6, 2014. REUTERS/Bernadett Szabo

BUDAPEST (Reuters) - Hungarian consumer confidence plunged to its lowest level since April, a survey by think tank GKI showed on Monday, as households turned gloomier about their employment and financial prospects amid a surge in inflation.

Hungarian inflation surged to an annual 6.5% in October, above expectations and driven in part by a 30.7% increase in fuel prices, which prompted Prime Minister Viktor Orban's government to impose a three-month price cap.

Hungary's central bank, which expects inflation to exceed 7% in November, was forced to ramp up the pace of its monetary tightening campaign to rein in inflation and shore up the forint, which skirted its April 2020 all-time lows last week.

"All participants of the economy expect price rises," GKI said in its monthly survey, which showed business confidence rising to a 2-1/2-year-high, driven by stronger optimism in most branches of the economy except for services.

"However, consumer (confidence) fell to an extent rarely seen over the course of a single month, sending it to levels last seen in the spring," GKI said.

It said worries about unemployment increased significantly, even as the share of companies planning to boost hiring exceeded those of planning layoffs in all branches of the economy.

Companies were planning price rises, while consumer inflation expectations also jumped, the survey said. It said households as well as industrial and service sector businesses turned gloomier about prospects for the economy.

Customers were also more pessimistic about their financial and savings prospects in November, breaking a six-month period of improvement, the survey said.

Facing a closely fought election next year, Orban's government has showered the electorate with handouts, including a $2 billion income tax rebate for families and an extra month's worth of pensions.

Hungarian consumer confidence plunges as inflation surges
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
ZS Beck
ZS Beck Nov 21, 2021 7:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Or an and he’s buddy’s don't feel any inflation, they just robbing the country. It’s an all-you-can-eat buffet, but the problem is they are the only ones are eating from it. Everybody else just washed the dishes and eat from the garbage. Can't wait for the day when all of them go away for good.
la popeye
la popeye Nov 21, 2021 7:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
unfortunately, people are demonstrating their total fed up by pro and cons vaccination. they distrust their gvern. politician and instead of all going into them, they are dividing us and will send our frustration, hate, violence into a huge conflict.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email