Hungarian government indirectly admits that inflation will be higher than expected

food store spar inflation price hungary (2)
Photo: Daily News Hungary

Hungarian pensioners will get an average top-up of HUF 39,600 in November to compensate for higher than expected inflation, the National Economy Ministry said on Friday.

The ministry noted that pensions had been raised by 3.2pc in January, corresponding to the government’s assumption for average annual inflation. That assumption has been raised to 4.5pc, and the 1.3pc difference will be paid to pensioners, retroactively, in November, it added.

By law, pensions must be adjusted to the rate of inflation to preserve pensioners’ purchasing power. The November top-up for Hungary’s 2.5 million pensioners will add up to HUF 91bn.

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