Hungary extends fuel and food price cap until end of year

Hungary extends fuel and food price cap until end of year

The Hungarian government has decided to extend the price cap for fuel and foodstuffs until December 31, Gergely Gulyas, head of the Prime Minister’s office, announced on Saturday September 17.

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A gas station of the Hungarian oil company MOL in Budapest, Hungary.
Photo: Xinhua/VNA/CVN

The government will also extend for at least six months the interest rate freeze which was originally due to expire on December 31, meaning that food will still be available to Hungarian families at pre-crisis prices, Mr. Gulyas, saying that interest rates would be brought under control and that the government was confident that by controlling fuel prices in Hungary they would remain the cheapest in Europe.

Mr. Gulyas further indicated that the government will also cover 50% of the additional energy costs of small and medium-sized enterprises and launch a program of “factory protection“, the details of which would be announced at a later date.

A customer shops at a market in Budapest, Hungary on April 8.
Photo: Xinhua/VNA/CVN

In order to save energy in winter, the government has set the maximum ambient temperature in secondary schools at 18 degrees Celsius, just like in public buildings, while classrooms in elementary schools will be set at 20 degrees. Maximum Celsius, Gulyas said.

According to the latest official figures, the inflation rate in Hungary was 15.6% in August, well above the 3% target set by the National Bank of Hungary.



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