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GULYÁS: WAR CALLS FOR EXTENDING PRICE CAPS

In view of the war in Ukraine, the government will extend price caps on food and petrol until October 1, and the loan moratorium and cap on mortgage rates until the end of this year, the prime minister's chief of staff said on Friday.
 

Gergely Gulyás told a regular press briefing that later in the year, a decision will be made on whether circumstances justify any further extension. As the war in Ukraine is driving inflation worldwide, Hungary also has to face rising inflation, he said. Under the current circumstances, it is important to rein in inflation in Hungary to counter the effects of global economic trends, and the Hungarian government is making every effort to achieve this by protecting utility price reductions and price caps, he said. The government has managed to keep a 5-6% lid on inflation with these measures, he added. The government has also imposed a 480 forint (EUR 1.2) per litre price cap on fuel for Hungarian motorists, he noted. Referring to a “letter from Brussels” calling on the government to scrap the measure, Gulyás said Hungary’s government remained committed to protecting the people and the economy from soaring fuel prices. A similar Italian measure has prompted lawsuits, which the country eventually won, he noted.