Orban extends price curbs as inflation soars ahead of election -Breaking
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© Reuters. FILEPHOTO: Viktor Orban (Hungarian Prime Minister) speaks during his arrival at the EU Summit in Brussels, Belgium on December 10, 2020. John Thys/Pool via REUTERSBUDAPEST (Reuters – Hungary’s Prime Minister Viktor Orban announced Wednesday that the government would reduce prices for six of its basic food items starting in February amid rising inflation. The announcement came as a result of price caps being extended to energy, fuel and mortgages, ahead of an April election.
Orban faces a difficult fight to re-elect himself on April 3. He stated that the prices for flour, sugar and sunflower oil must drop to mid-October from next month.
Orban spoke out after a government meeting, saying that “prices are rising in Europe because of an rise in energy prices.” He stated that the price cuts should be made across all of Europe.
Orban (58) and Fidesz, his nationalist ruling party, will be facing a united front at the ballot for the first time since he took power in 2010 by landslide.
It includes the Democratic Coalition as well as the Socialists and liberals. The formerly far-right but now center-right Jobbik is also included in the opposition alliance. Peter MarkiZay (small-town mayor), is the leader of this alliance. He’s an active political outsider.
In a poll by Median, December 2013, Fidesz led the opposition by five points in an election survey. The results were published last month.
However, Hungarian inflation rose to 7.4% in November, a record high for the country, and well above what was expected. Reuters economists expect December inflation to be 7.2%, according to Reuters.
Marki-Zay claimed Orban’s announcement represented what was called an admission of economic tragedy.
He said that an atrocious government must be removed from office if it begins to tackle prices within the 12th week of its 12-year-long reign with a majority (parliamentary) of two-thirds.
Orban had announced in November a cap of three months on the price of fuel. This could be increased after an examination in February.
Orban also set a ceiling on retail interest rates in mortgages until June. This is to protect borrowers from higher loan repayments due to rising inflation.
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