BUDAPEST, (Reuters) – Hungarian consumers’ confidence plummeted to the lowest point since April according to a GKI survey. This was due to households becoming more worried about their financial and employment prospects in light of an increase in inflation.

The inflation rate in Hungary was 6.5% per annum in October. That’s higher than anticipated and was driven partly by the 30.7% rise in fuel prices. Prime Minister Viktor Orban ordered a price cap for three months.

Hungary’s central banking, expecting inflation to surpass 7% in November was made to accelerate its monetary tightening campaign in an effort to curb inflation and stabilize the forint. The bank slowed down its April 2020 all time lows by a week last week.

GKI reported that all participants in the economy anticipate price increases in their monthly survey. This was driven by greater optimism across most sectors of the economy, except services, and led to business confidence reaching a 2-1/2 year high.

GKI reported that consumer confidence fell to a level rarely seen within a month. It was at levels not seen since the spring.

The report stated that unemployment worries have increased in recent years, even though the proportion of businesses planning to hire more people than the percentage of those planning to lay off employees across all economic sectors.

According to the survey, companies were planning for price increases, and consumers’ inflation expectations jumped. Both households and companies in the industrial and service sectors became more gloomy about their economic prospects.

According to the survey, customers also felt more optimistic about their financial and saving prospects for November. This was despite a period of six months that had seen improvement.

Orban’s government is facing a close-fought election next year and has given out handouts to the electorate, such as a $2 Billion income tax rebate for families, plus an additional month of pensions.