Orban Caps Staple Food Prices to Fight Inflation Ahead of Vote
(Bloomberg) -- Hungarian Prime Minister Viktor Orban said his government has ordered a cap on the cost of six basic food items to help temper the impact of spiraling inflation as the nation prepares for its most closely contested election in more than a decade.
The price of sugar, flour, sunflower oil, chicken breast, pork leg and milk with a fat content of 2.8% must be sold at Oct. 15 price levels in all stores starting next month, Orban said in a Facebook video on Wednesday following a cabinet meeting.
Orban’s administration has already capped fuel prices and frozen mortgage rates to ease the burden on households after consumer prices rose to an almost 14-year high of 7.4% in November.
Facing an alliance of six opposition parties who aim to unseat him in the April ballot, his government has also embarked on a spending spree that includes giving almost $2 billion in tax rebates to families and hikes to pension checks and the minimum wage.
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