Facts & Statistics

Inflation will be higher than expected

The price of war should not be paid by the Hungarian people, and this is only possible if the government is able to continue to buy energy as cheaply as possible.

Gergely Gulyás, Head of the Prime Minister’s Office, said that they know that inflation will be higher than the forecasts made by the Hungarian National Bank and the government before the outbreak of the Russian-Ukrainian war.

The minister said that the most important thing was for the European Union to reverse its previous decisions and not to adopt sanctions that would make it impossible to import Russian oil and gas. Otherwise, Hungary would have to buy these raw materials at significantly higher prices, making it impossible to continue overhead reductions and the functioning of the economy.

He said the government’s ambition was to continue to ensure the sustainability of the conditions for cuts in utility prices, which are based on the availability of oil and gas and on the return of energy prices to normal levels as soon as possible.

“We must not impose sanctions that punish ourselves first and foremost, and not those we want to punish,” Gulyás said.

He said the European Union had not adopted any sanctions that would make it impossible for anyone to pay for Russian gas in rubles. The Hungarian state does not even pay for gas in rubles, as it has opened a euro account to which the price of gas is transferred in euros and then converted into rubles by the bank. Nine countries other than Hungary do this as well, he said. 

Finally, he stressed that with energy commodities becoming extremely expensive and the need to supplement the necessary funds from the budget, the government needs to re-examine the sustainability of the food and gasoline price freeze. 

Furthermore, MOL is also taking on a significant burden to maintain the retail fuel price at HUF 480, he said.

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