22 Nov 2021
Consumer Confidence in Hungary Falls as Inflation Surges
The Index Today
A survey by think tank GKI revealed consumer confidence falling to its lowest level since April in Hungary. The country is facing surging inflation as citizens’ struggle with employment and declining income.
According to reports, the inflation rate in Hungary went up 6.5% in October. Fuel prices saw a 30.7% increase which also added to the overall price increase. Hungary’s Prime Minister Viktor Orban imposed a three-month price cap due to fuel inflation.
The Central Bank of the country has been tightening its monetary policies to manage inflation as it forecasts for November exceed 7%. In a monthly survey, GKI said, “All participants of the economy expect price rises. However, consumer confidence fell to an extent rarely seen over the course of a single month.” The survey also reflected an increase in business confidence in some areas of the economy.
Unemployment remains a leading issue for the nation as many companies continue to lay off workers. The survey showed consumer inflation expectations to increase with increased concerns over finance and savings.