Hungary Aims To Curb Inflation Well Below 10% By End Of 2023: Orban

By Steve Wynne-Jones
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Hungary Aims To Curb Inflation Well Below 10% By End Of 2023: Orban

Hungary aims to curb the European Union's highest inflation rate from levels exceeding 20% to well below 10% by the end of the year, Prime Minister Viktor Orban told public radio in an interview on Friday.

Hungary's headline inflation fell more than expected to 21.5% year-on-year in May, easing for a fourth straight month and keeping a path open for the central bank to further unwind some of its sharp interest rate hikes of the past two years.

The bank is likely to cut its key one-day deposit rate by another 100 basis points at its monthly meeting next Tuesday, while the Polish central bank has also flagged it might lower borrowing costs if inflation keeps falling.

'Fight Against Inflation'

"Inflation must be reined it ... we need to fight against it," Orban said, adding that some of his government's unconventional price control measures may be kept in place, others phased out, while new ones could be launched.

Economists polled by Reuters last month projected headline inflation falling to 8.8% year-on-year by December.


Mandatory Price Cuts

Earlier this month, nationalist Orban, who is facing his toughest challenge since coming to power in 2010, imposed mandatory price cuts on some basic food items by large retailers as part of wider efforts to curb heady price growth.

The price surge is taking a toll on Hungarians, with food sales falling by 8.6% year-on-year in April. Orban said his cabinet would announce new measures to aid the economy next week.

Read More: Top 10 Supermarket Retail Chains In Hungary

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