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Ministers Increasingly Bullish Inflation Will Retreat Further into Year-End

HUNGARY
  • Most wires re-run the exclusive Reuters interview with finance minister Varga out yesterday, highlighting that the government are to conduct a full review of the 2023 budget in September, and that the finance ministry expect inflation to slow to 7-8% by year-end from current levels north of 20%.
  • Following Varga’s bullish interview on Thursday, Gulyas (head of Prime Minister’s office) doubled down this morning, stating that inflation could slow to single digits by October or November, adding that “we can see the light at the end of the tunnel”.
  • EU Justice Ministers are set to meet later today, including Hungary’s rep Judit Varga. Any headlines or comments on the receipt of EU funds earmarked for Budapest will be carefully watched. Fidesz lawmakers are on a retreat in Romania, at which PM Orban is set to make a keynote address on Saturday.

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