Hungarian Conservative

According to the Hungarian Ministry of Energy, Hungarian gas consumption, similarly to the previous cycle, decreased by a fifth in the last period observed, outperforming the compulsory target prescribed for EU member states.

As a result of a series of government initiatives, both households and institutional players have significantly increased their holdings of government bonds. In an unprecedented manner, households now hold a larger amount of government bonds than bank deposits.

The director of the National Bank of Hungary (MNB) András Balatoni explained that the strict monetary policy, decreasing global commodity prices compared to last year, restrained consumption, and market-boosting measures by the government are increasingly exerting a disinflationary effect.

The Ministry of Economic Development said in a statement that the increased demand for government bonds has both directly and indirectly improved the government’s self-financing capability, reduced government interest expenditures, and managed to preserve the real value of citizens’ savings. Additionally, government measures have contributed to the fact that individuals are making more conscious decisions about their savings, turning towards higher-yielding assets in a high yield environment.

To make the process of reducing inflation as strong and significant as possible, all possible tools must be used, they added. For this reason, in collaboration with the government, the Hungarian Competition Authority is establishing an online price monitoring system based on international examples, which contributes to increasing market competition and preventing overpricing.

According to Gergely Gulyás, head of the Hungarian Prime Minister’s Office, the Hungarian government would continue its policy of price limits as sanctions-induced inflation hits the European region.