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Food Price Caps to End in August; Unemployment Rate Falls to 3.8% in May

HUNGARY
  • The government has decided to maintain the current cap on the price of some food products until August 1, after which the scheme will end, Gergely Gulyas told a regular press briefing on Thursday. Central bank Governor Gyorgy Matolcsy has previously criticised Prime Minister Viktor Orban’s government for a series of “strategic mistakes” over spending and state intervention. He said pre-election spending and the introduction of a food price cap backfired as they pushed grocers to hike the costs of other products.
  • Hungary’s unemployment rate fell to 3.8% (Est: 3.9%) in May from 3.9% in April, according to data released by the Central Statistical Office this morning.
  • Fitch Ratings, which cut the outlook on Hungary’s investment grade to 'negative' and affirmed its ‘BBB’ rating at the start of the year, is scheduled to publish its latest sovereign credit assessment after hours today.

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