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Press Roundup: Inflation Soars, Government Caps Fuel Prices

Hungary Today 2021.11.13.

A left-wing commentator accuses the government of trying to mitigate inflation caused, in part, by its own policies. His right-wing counterpart praises the measure as beneficial for consumers and businesses alike.

Hungarian press roundup by budapost.eu

Background information: on Tuesday, the Central Statistical Office (CSO) reported that inflation in October jumped to 6.5 percent year on year, the highest level since 2012. In response, the government on Thursday imposed a 90-day cap on fuel prices. The maximum price for petrol and diesel is set at 480 HUF, nearly 30 Forints lower than the current average.

 

Népszava’s Zsolt Papp explains the high inflation rate with a combination of the post-pandemic recovery, soaring energy prices, and what he calls the government’s mistaken policies. The government spending spree, he suggests, speeds up inflation and cancels wage hikes. Papp calls on the government to reconsider its policies and the National Bank to raise interest rates in order to contain inflation.

In an interview with Magyar Nemzet, Olivér Hortay, an analyst of the pro-government Századvég think tank, thinks that capping fuel prices will help roll back inflation and will also incentivize growth. Hortay recalls that the current government has for years kept household utility prices low. He welcomes the current cap on fuel prices as a measure that will reduce industrial costs as well as family expenditures.

Featured image via Zsolt Szigetváry/MTI


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