Economy
Hungary's EcoMin: You may interfere in market processes only so much
The governing Fidesz party and the cabinet have come up with a new target to shoot at this week. Antal Rogán, head of the parliamentary group of Fidesz, said on Monday he would invite the heads of interest representatives to Parliament in the following weeks and ask them why the reduction to the price of motor fuels passed through to product prices yet. On Wednesday, the Economy Ministry jumped on the bandwagon and announced it will launch an investigation into this matter, in particular in view of the low oil and fuel prices.Meeting up ahead
The meeting Rogán, Chairman of Parliament’s Economic Committee, talked about could take place next week, daily newspaper Magyar Nemzet reported on Thursday.
To the paper’s inquiry, the press department of the Fidesz party said they will reconcile with the Hungarian Baker Association and the Federation of Hungarian Food Industries (ÉFOSZ) how much the decrease in fuel prices will lower prices in these segments.
No price regulatory body
As regards the drop in local fuel prices, Varga told public television MTV late on Wednesday that there is a market economy in Hungary, there is no price regulatory authority that would interfere with market processes. But it needs to be examined that when there is a drop in the price of a product which impacts the price of other goods, why the impact of this fall cannot be seen.
He noted that in the case of foreign currency loan holders the problem was also that when the forint depreciated the crediting bank would immediately raise the monthly instalments, but when the forint firmed the necessary adjustments were made only much later.
The ministry analyses inflationary processes, it monitors which sectors track the [fuel] price changes and which are the ones that do not. But it only signals its findings as you may interfere with market developments only with restraint, he added.
The meeting Rogán, Chairman of Parliament’s Economic Committee, talked about could take place next week, daily newspaper Magyar Nemzet reported on Thursday.
To the paper’s inquiry, the press department of the Fidesz party said they will reconcile with the Hungarian Baker Association and the Federation of Hungarian Food Industries (ÉFOSZ) how much the decrease in fuel prices will lower prices in these segments.
No price regulatory body
As regards the drop in local fuel prices, Varga told public television MTV late on Wednesday that there is a market economy in Hungary, there is no price regulatory authority that would interfere with market processes. But it needs to be examined that when there is a drop in the price of a product which impacts the price of other goods, why the impact of this fall cannot be seen.
He noted that in the case of foreign currency loan holders the problem was also that when the forint depreciated the crediting bank would immediately raise the monthly instalments, but when the forint firmed the necessary adjustments were made only much later.
The ministry analyses inflationary processes, it monitors which sectors track the [fuel] price changes and which are the ones that do not. But it only signals its findings as you may interfere with market developments only with restraint, he added.
