There is a good chance that inflation will reach single digits before the end of the year. According to the Center for Fundamental Rights, we are past the peak of the general monetary deterioration process caused mainly by the failed sanctions policy in Brussels.
Miklós Szánthó, the director general of the Fundamental Rights Center, warns that the deteriorating market and trust sentiment arising from developments in the American and European banking markets is emerging as a new, unexpected risk in the international arena.
Miklós Szánthó/Photo: MH/Róbert Hegedüs
The Center stated that if the sanctions were lifted, price inflation would even be halved in the short term, but the annual inflation in February decreased, albeit slightly (by 0.3%) compared to January.
They believe that GVH's consumer protection investigations, which are intended to suppress widespread aggressive retail pricing, will play a role in the decrease, which will soon be supplemented by a price monitoring database that can also be followed via the Internet, as well as the well-calibrated price caps and overhead protection policy. The result of the latter is that 80 percent of household gas consumption and 65 percent of electricity consumption belong to the reduced overhead category .The Center warns that the deteriorating market and confidence sentiment arising in connection with developments in the American and European banking markets is emerging as a new, unexpected risk in the international arena, which may slow down the favorable inflationary processes.
Overall, they note that there is a good chance that inflation, which was already falling at a faster rate in the second half of the year, will become single digits before the end of the year.
Source: Magyar Hírlap
Featured image: Infostart/MTI
