As inflation lowers, Hungary will progressively lift price limitations on critical items and mortgage rates, Prime Minister Viktor Orban said Friday.
As the economy weakens, the central bank’s interest rates remain EU-high, and annual inflation exceeds 25%, Orban faces his largest struggle since 2010.
Orban said his government’s pricing limitations were “helpful” in battling inflation but disturbed markets and were eased down.
Orban said state radio food pricing limits would be scrapped when inflation drops.
“If inflation drops, we’ll have to give up defense measures we built due to excessive inflation.”
No details. Due to shortages, his government dropped a fuel price restriction in December.
The headline rate of 25.4% remained steady in February, giving hawkish central banks little reprieve.
National Bank of Hungary Governor Gyorgy Matolcsy said all price controls, including those on some essential goods, should have been eliminated at the start of the year as they have added 3% to 4% to inflation, with the 2023 budget adding further inflationary pressures.
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