Hungarian PM Orban justifies price caps amid soaring inflation

BUDAPEST, May 9 (Xinhua) -- Hungarian Prime Minister Viktor Orban said on Friday that the government must intervene in the pricing system to shield families from what he views as unjustified price increases, as inflation continues to put pressure on household budgets.

Speaking on Kossuth Radio, Orban defended the recent policy to extend price caps to include household and personal care items, in addition to existing controls on essential food products.

The Hungarian government announced on Thursday the extension of its anti-inflation measures, broadening profit margin caps to cover more than 1,000 household items across 30 categories. The government expects the move to reduce average prices by more than 10 percent.

Orban noted that Hungary has been grappling with a severe inflationary shock linked to the armed conflict in Ukraine, describing it as an external blow that severely affected the country's economy. He said the government has been striving to bring prices under control and emphasized that many recent price hikes are unwarranted.

On Thursday, Hungary's central statistical office (KSH) reported that consumer prices rose by 4.2 percent year-on-year in April. Food prices were up 5.4 percent from a year earlier. ■