We are facing the most difficult three months of the Hungarian economy

By: Trademagazin Date: 2022. 08. 17. 11:04

Increase in utilities, fuel changes, transformation of the kata, drought – between August and October, inflationary pressure is heavier than ever before on the Hungarian population. In this period, it is more difficult for the government to point only to abroad, it cannot completely avert responsibility from itself – reports Telex.

The Magyar Nemzeti Bank (MNB) always says that domestic inflation is primarily of foreign origin. And the government regularly talks about wartime inflation (fortunately, this is also an external cause). Yes, but now a hard period is coming, when we will have to talk primarily about domestic factors in relation to inflation.

For example, about the drought, which can further increase the already brutal increase in the price of food, which is also an “internal” cause, but of course not the government’s responsibility.

Or about the overhead increase, which is now putting a big shovel on the domestic financial deterioration due to the partial release of a political product.

But also about the narrowing of the fuel price cap, which was a lost government bet where the government bet that a drastic price increase in energy prices could be temporary.

Also, about the mid-year transformation of the kata, due to which the service providers gathered under the collective name “market services” are experiencing an increase in burden that they will certainly try to pass on to consumers.

Unfortunately, so many new elements are added to the latest (July) inflation data of 13.7 percent from this mix that the analysts we interviewed are already expecting inflation above 20 percent.

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