The government will extend price caps on food and petrol to 1 October, while the loan moratorium and cap on mortgage rates will apply until 31 December, Prime Minister Viktor Orbán said on Thursday.
Orbán said on Facebook that the price of petrol will remain 480 forints (EUR 1.2) per litre. However, that is true only for those car owners, who have Hungarian license plates. You can find all the relevant details in THIS article.
Finance ministry: Tax cuts, pension, wage hikes to total nearly HUF 3,300 bn
The total amount of tax cuts and pension and wage increases will be close to 3,300 billion forints (EUR 8.3bn) this year, the finance minister said on Thursday. Mihály Varga said on Facebook that the government was protecting Hungary from an economic crisis caused by the war. As a result, it will preserve family support, maintain the value of pensions and wages and will reduce the budget deficit and public debt, he added.
Taxes on labour will be reduced by a total of 750 billion forints, tax rebates for families will total 685 billion forints, pension increases in January and July will total 400 billion forints and 13th-month pensions will total 370 billion forints, he said.
“Whereas the left wing is talking about the threat of austerity, reality shows something very different,”
Next year’s budget will be dedicated to protecting utility fees and defence, with 670 billion forints allocated for a utility fee protection fund and 842 billion forints for a defence fund.
Here is how the national bank fights against inflation
The National Bank of Hungary (NBH) raised its one-week deposit rate by 50 basis points in Thursday in a move that the markets were not expecting. Deputy governor Barnabás Virág said the measure was in response to emerging risks, adding that the
cycle of rate hikes must continue until inflations peaks.
“We’re far from” the end of the tightening cycle, he said.
Virág said the bank was likely to raise its inflation forecast in its next quarterly Inflation Report due out late in June. He noted the bank’s current 2022 forecast of 7.5-9.8pc in its inflation report released in March.