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Inflation 'On the Right Path' - Orbán

Government

Photo by Ilyas Tayfun Salci / Shutterstock.com

Inflation is "on the right path" and could fall into the single digits even before the end of the year, Prime Minister Viktor Orbán said in a weekly interview on public radio on Friday, according to a report by state news wire MTI.

"The concrete scale [of inflation] isn't the important thing now, but the falling tendency," Mr Orban said in Sopron, where he is heading a two-day cabinet meeting.

He added that the government target to bring CPI down to the single digits by December could be reached "one to one-and-a-half months" earlier.

Orbán noted the importance of maintaining government measures to "thrash" inflation and pointed to the effectiveness of mandatory sales at big supermarket chains as well as a recently rolled-out price monitoring platform.

Hungary's CPI rose 20.1% year-on-year in June, falling for the fifth month in a row after peaking at 25.7% in January. 

Orbán said the European Commission's recommendation to phase out Hungary's regulated utility price scheme for households had been discussed at the cabinet meeting with a view to keeping the system in place.

He noted that the scheme saves every Hungarian household HUF 181,000 a month and said the system couldn't be seen "simply as a matter of energy", but as a matter affecting "the standard of living of Hungary's middle class...and poorer people, too".

"Because of that, the regulated utility price scheme must remain in place," he added.

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