Entries RSS Feed Share Send to Facebook Tweet This Accessible version

Inflation soars, government caps fuel prices

November 13th, 2021

A left-wing commentator accuses the government of trying to mitigate an inflation caused, in part, by its own policies. His right-wing counterpart praises the measure as beneficial for consumers and businesses alike.

On Tuesday, the Central Statistical Office (CSO) reported that inflation in October jumped to 6.5 per cent year on year, the highest level since 2012. In response, the government on Thursday imposed a 90 day cap on fuel prices. The maximum price for petrol and diesel is set at 480 HUF, nearly 30 Forints lower than the current average.

Népszava’s Zsolt Papp explains the high inflation rate with a combination of the post-pandemic recovery, soaring energy prices, and what he calls the government’s mistaken policies. The government spending spree, he suggests, speeds up inflation and cancels wage hikes. Papp calls on the government to reconsider its policies and the National Bank to raise interest rates in order to contain inflation.

In an interview with Magyar Nemzet, Olivér Hortay, an analyst of the pro-government Századvég think tank, thinks that capping fuel prices will help roll back inflation and will also incentivize growth.  Hortay recalls that the current government has for years kept household utility prices low. He welcomes the current cap on fuel prices as a measure that will reduce industrial costs as well as family expenditures.

Tags: , , ,