FinMin raises 2006 inflation projection to 3.5%


The Finance Ministry projects average annual inflation of 3.5% in 2006 in its latest projection, up from 2% projected in April, before the announcement of government austerity measures, business daily Napi Gazdaság reported on Thursday.

The projection puts year-end twelve-month inflation as high as 6%. The ministry projects rising unemployment paired with slowing household consumption and investments. Real wages are expected to rise just 3%-4%, compared to 4%-6% projected in April, although gross wages could rise faster. Investments are expected to slow to 6%-7%.
Businesses showed more caution already in the first quarter of the year, making net savings. With households in a poor position to make savings, Hungary's external financing could increase, widening the current account deficit, and causing the budget deficit to swell as well. The situation is eased, however, by the exclusion from the Budget Act of Ft 238 billion in debts from the National Motorway Rt (NA), Napi Gazdaság writes.

Paks II Work 'Rumbling Ahead,' Says Szijjártó Power

Paks II Work 'Rumbling Ahead,' Says Szijjártó

Hungary to Host Next EPC Summit Int’l Relations

Hungary to Host Next EPC Summit

New Tenants at Academia Offices Office Market

New Tenants at Academia Offices

Visitor Numbers, Guest Nights Climb in H1 Tourism

Visitor Numbers, Guest Nights Climb in H1


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.