Hungary extends fuel price cap

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Hungary will extend fuel price caps for another three months, Prime Minister Viktor Orban said on Saturday, the latest anti-inflationary measure announced by his government ahead of the April 3 elections, according to Reuters.

For the first time since taking power in 2010, Orban and his ruling ruling party, Fidesz, will face a united front of opposition parties. Opposition leader Peter Marki-Zay said on Facebook that the six-party alliance had garnered enough signatures to run for office in all 106 constituencies. digi24.ro.

Faced with rising prices, which could drive inflation to its highest level in 2008, Orban’s government imposed a crackdown on staple food prices in February, extending the ceilings already set for energy, fuel and mortgage prices. .

“Price capping has worked, so we’re extending it for another three months,” Orban said.

This means that a rule limiting retail fuel prices to 480 forints ($ 1.53) per liter, which was due to expire next week, will remain in effect until May 15.

Despite price controls, consumer prices in Hungary rose in January at the fastest pace in almost 15 years, and core inflation rose sharply, prompting analysts to raise forecasts and signaling the need for further interest rate hikes.

Orban also imposed a tightening of interest rates on retail mortgages until the end of June to protect borrowers from rising repayment costs after rising inflation prompted the central bank to raise interest rates more than expected. previous.