The government has overcome obstacles to cutting inflation and reduced it to single digits ahead of time, Márton Nagy, the economic development minister, said on Friday, commenting on Central Statistical Office (KSH) data showing that Hungary’s annual consumer price index fell to 9.9% in October. Nagy said sanctions and price speculation by multinationals had rocketed inflation upwards and the central bank alone lacked the tools to deal with it. So the government took over responsibility for fighting inflation, he added, noting measures such as mandatory price cuts and an online price monitoring system.
CPI for pensioners dropped to an even more favourable 9.1%, he noted. The price of food fell by 0.1% compared with the previous month and the price of household energy by 0.3%.
Also, the ministry’s talks with the Hungarian Mineral Oil Association led to more competitive fuel prices, with the price of vehicle fuels dropping by 3.8%, he noted. Nagy said there was now a fair chance of real wages growing again from September, and the government would maintain support for wage increases with the aim of 4-5% wage growth next year, and a knock-on target of higher consumption. The minister said 2023 was the year “to break inflation” and 2024 would be the year to “restore growth”.