Hungarians work, buy fuel, flour and do the shopping in Romania due to skyrocketing inflation

Romania’s greatest commercial TV Channel, Pro TV, reported that a growing number of Hungarians are working and shopping in Romania. A shop owner, for example, said that they sell imported Hungarian flour to the Hungarians. Meanwhile, inflation still skyrockets in Hungary.

Romania more developed than Hungary?

A woman told Pro TV that they work in Nagyvárad (Oradea) and get higher salaries than they would in Hungary. Furthermore, their workplace is closer. An expert from Cluj Napoca (Kolozsvár) said Romania was more developed than Hungary. The director of the workers’ office in Bihar county added that unemployment is lower in West Romania than in East Hungary, 444.hu wrote.

The food price rise is the tenth biggest in the world in Hungary. We were in one league with Ghana, Suriname and Rwanda last December. In the EU, the Hungarian increase is the worst. You may check out some diagrams in 444.hu’s article HERE. Hungary is the red line in each, showing the greatest rise in all aspects of the European Union.

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Hungary December annual inflation 24.5 pc

Annual inflation in Hungary was 24.5 percent in December, up from 22.5 percent in the previous month, the Central Statistical Office (KSH) said on Friday.Month on month, inflation was 1.9 percent. Food prices grew by an annual 44.8 percent in December, with the price of bread up 81.1 percent and egg prices up 82.7 percent. Household energy prices increased by 55.5 percent, with gas prices up 97.8 percent and electricity prices increasing by 27.8 percent.

Consumer durable prices rose by 13.6 percent, while the price category that includes vehicle fuel was up 22.6 percent. Core inflation, which excludes volatile fuel and food prices, was 24.8 percent.

• Read also: Is the Italian Lidl still more expensive than its Hungarian counterpart?

Fiscal Council sees budget amendment bill ‘credible’

The budget amendment bill submitted to parliament is credible, and the Fiscal Council has no “fundamental objections” against it, but it sees several risks concerning the fulfilment of its targets, the body said on Thursday.

Hungary’s ESA deficit ratio is set to grow to 3.9 percent from 3.5 percent, while the cash-flow deficit will expand from 3.3 percent to 4.5 percent, the Fiscal Council said on its website, noting that a 3 percent deficit would be “desirable”.

The amended 2023 budget bill targets growth of 1.5 percent as against 4.1 percent initially forecast, it noted, adding that the growth largely depends on foreign market trends. The government’s plan to use revenue from any extra growth above 1.5 percent to reduce the deficit is a welcome development, the council said. It also noted that the public debt is projected to drop to 69.7 percent by the end of 2023 from 73.5 percent at the end of last year.

Source: 444.hu, MTI