Taking further price increases into account and taking into account the average of the entire year, a four to five percent increase would be in line with the inflationary values, according to the analyst.

Another, extraordinary pension increase may be necessary, this can be realized in two ways, the adjustment does not endanger the balance of the budget due to incomes due to high inflation.

The price increase experienced by pensioners on a daily basis is much higher than the general rate of inflation, so an extraordinary pension increase would be necessary, according to pension expert András Farkas, who drew attention to this in his article published on Portfolio.hu.

Péter Virovácz, ING Bank's senior analyst, told our newspaper that there could be several scenarios for this. If the government waits, it can get a clearer picture of how much of an increase would be needed in November.

If the cabinet strictly adheres to the legal requirement, then taking into account the inflation average of the first eight months, an adjustment of one and a half to two percent may come in November. However, according to the analyst, this does not completely follow the expected price increases in the coming months. Therefore, as another scenario, it could be considered that pensions increase by four to five percent in November, and not the first eight months, but the inflation average of the entire year up to that point, is used as a basis for determining the amount of the increase.

A two percentage point increase would mean HUF 200 billion in expenditure for the budget, while four to five percent would be proportionally higher (and more noticeable), but due to the income coming in thanks to high inflation, this could fit into the budget so that meeting the annual goals is not a problem at all - Virovácz explained.

According to him, the third scenario would be if an adjustment were to take place before November, and in the penultimate month the cabinet would carry out a real value preemptive increase. All in all, taking into account additional price increases and taking into account the average of the entire year, a four to five percent increase would be in line with inflationary values, the analyst believes.

Source: Magyar Hírlap

Featured image: profitline.hu