MNB Deputy Governor Warns of Autumn Recession

MNB

Photo by MTI / János Bugány.

According to National Bank of Hungary (MNB) Deputy Governor Barnabás Virág, there is a very serious risk of a global recession by autumn.

"Here in Europe, it is still too early to talk about whether we are at the end of the inflationary climb," Virág said on InfoRádió 's Aréna program.

According to him, the rate of inflation may begin to slow down at the end of the year or at the beginning of next year. He warned that two more aspects that have arisen in recent months must be taken into account when estimating the rate of inflation.

"In addition to the current rise in food and energy prices, the drought situation must be taken into account, which in the East-Central European region could trigger a new wave of price increases in the fall for those products that have already risen in price to one of the greatest extents," he said.

The other effect would be the increase in utility prices due to the latest government measure, which Virág added would be reflected in the September bills and give another boost to inflation. According to the central bank's estimate, inflation may accelerate to around 20% by autumn.

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