Minister expects 7% inflation in Hungary by December

The government aims to protect Hungary’s investment- and export-led economy, Márton Nagy, the minister of economic development, told an event on Saturday.

It also aims to protect consumers against high energy prices while stimulating consumption in the midst of a tough credit market, Nagy told the Tranzit Festival in Tihany, in western Hungary.

Hungary has been highly sensitive to the drastic rise in energy prices connected with major energy imports, he said.

Thanks to levying a tax on excessive corporate profits, the government managed to protect consumers, he added.

Another vital measure was to seduce ordinary Hungarians into buying high-interest-yielding state bonds, he noted.

Whereas consumption fell by 10 percent in a single year, real wages will have risen by 16 percent by August, he said, insisting that economic growth would return next year.

Vital goals include protecting jobs and supporting families, Nagy said.

Measures have focused on avoiding energy, interest and consumption traps, he said, noting that energy prices have stabilised.

Referring to the government’s online monitoring system for ensuring that supermarkets stick to mandatory low pricing for certain produce, he said that the system had been inflation-busting and had stimulated price competition between big retailers.

Nagy underlined the government’s projection for inflation to be in the single digits by year-end, down from 16 percent in August, 11-12 percent in September, 9-10 percent in October, 8 percent in November, and 7 percent in December.

Meanwhile, the minister said Hungary was a bridge between German and Chinese capital, and he mentioned its strengthening role in goods transport and logistics.

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