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Hungary extends energy and food price caps amid soaring inflation

Published 09/17/2022, 07:44 AM
Updated 09/17/2022, 08:30 AM
© Reuters. FILE PHOTO: A driver fills a car at an Envi petrol station in Budakalasz, Hungary, June 13, 2022. Picture taken June 13, 2022. REUTERS/Bernadett Szabo

BUDAPEST (Reuters) -Hungary has extended price caps on fuels and basic foodstuff by three months until the end of the year in a bid to shield households from soaring costs, Prime Minister Viktor Orban's chief of staff told a briefing on Saturday.

Budapest has sharply criticised the European Union for imposing sanctions on Russia over its invasion of Ukraine, saying they have failed to weaken Moscow meaningfully while causing a surge in food and energy prices.

Combined with falls in the forint to record lows, the price rises have sent Hungary's inflation to two-decade highs, forcing the National Bank of Hungary to hike its base rate sharply to 11.75%.

Announcing the price cap extensions beyond their original Oct.1 expiry, Orban's chief of staff, Gergely Gulyas, also said the government would extend a cap on mortgage rates that was originally due to expire at the end of this year, by "at least six months".

"We now assess that as long as the (EU) sanctions are in place, there is no realistic chance for an improvement," Gulyas told the media briefing.

© Reuters. FILE PHOTO: A driver fills a car at an Envi petrol station in Budakalasz, Hungary, June 13, 2022. Picture taken June 13, 2022. REUTERS/Bernadett Szabo

Orban's government has also decided to launch a support scheme for energy-intensive small businesses, covering half of the increase in their energy bills compared with last year's levels, Economic Development Minister Marton Nagy said.

He said the government would also launch an investment support scheme for small businesses to help them improve their energy efficiency and cut costs.

Latest comments

Hungary should be expelled from the European Union, the ungrateful and large debtors of European funds are not needed in the Union.
It's all about the govermet's power and It is not all about the people :) . It' s all a joke and a sad. The country would have a new goverment with its new point of view! The all Hungarian people is under a huge goverment's propaganda. That is why the people are in their dreams ... and aren't in the their reality.
unbelievable Spam. I don't believe it is a hack investing.com has to be allowing it for money. Ive never seen it on any other sites
Orban’s clan is now officially laballed by the EU as an (elected) autocratic regime. His ponzi scheme will end, sooner or later.
true
shortages are next
 nobody will bring any product to a price cap area
false
 what, your teeth?
Well I sympathize but energy prices have fallen dramatically with sanctions in place so that argument is false.
unless you live in EU where natural gas prices are up 2000%
ok but natural gas is not the only energy commodity.
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