DK: Central bank’s inflation forecasts show Hungarian economy ‘in big trouble’

The opposition Democratic Coalition (DK) said the central bank’s (NBH) inflation forecast of around 20% in the coming months “constitutes an admission that the Hungarian economy is in deep trouble”.

“There will be inflation as long as Viktor Orbán is prime minister,” said DK MP Laszlo Varju. “Under the Orbán government, our lives will deteriorate further.”

He added that with inflation at a 25-year high, government measures such as capping household energy bills and austerity alone would not be enough to make a difference.

Varju attributed soaring inflation to “a decade of forint weakness – a direct consequence of [ruling] The economic policy of Fidesz.

“The Hungarian economy and daily life are suffocating under Orbán’s inflation,” he said.

Varju also blamed the Prime Minister for the decline in the value of salaries and pensions.

“Viktor Orbán wants Hungarians to pay the price for his poor governance after tripling his own salary,” Varju said.

In response, the ruling Fidesz accused DK leader Ferenc Gyurcsany of exploiting the war in Ukraine with the aim of returning to power. “Europe and Hungary are suffering from the consequences of the war and the sanctions from Brussels… but Ferenc Gyurcsany only thinks of returning to power,” the party said in a statement.

Gyurcsany’s tenure between 2004 and 2009 ended because “the Hungarian people fired him for pushing Hungary into economic crisis, mass unemployment and the brink of insolvency, and for tripling the price of gas and electricity prices doubled; even without an energy crisis…” “Gyurcsany and the left wing have ruined the country,” the statement read.

Laura T. Thrasher