Gov't price controls shave 4.4 pp off CPI

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Government measures to control prices amid climbing inflation have cut headline CPI by 4.4 percentage points, Gergely Gulyás, the head of the Prime Minister's Office, said at a weekly press briefing on Thursday, according to a report by state news wire MTI.

Gulyás said March CPI would have been 13% without the measures, well over the 8.6% rate adjusted for better comparison with other European Union member states.

The government capped retail vehicle fuel prices at HUF 480 per liter from November 15 to ease accelerating inflation. From February 1, it rolled back prices for a number of staples, including pork, cooking oil, and flour, to mid-October levels. Hungarian households have also been shielded against the impact of higher global energy prices by a regulated utilities price scheme that has been in place for years.

Gulyás said the household utilities price scheme shaved 2 percentage points off headline CPI, while the fuel price cap reduced it by 1.5 percentage points and the price caps for staples by 1 percentage point.

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