BUDAPEST (Reuters) - Hungary's government is targeting negotiated agreements with telecom companies and banks on price levels, Prime Minister Viktor Orban said on Friday, as part of wider efforts to
Orban Negotiates with Telecoms and Banks to Lower Prices
BUDAPEST (Reuters) - Hungary's government is targeting negotiated agreements with telecom companies and banks on price levels, Prime Minister Viktor Orban said on Friday, as part of wider efforts to curb surging services inflation.
With rising prices threatening to derail the veteran right-wing leader's hopes of reelection in 2026, Orban's government imposed food price controls upon food retailers in March after inflation hit the highest level of any European Union country.
His comments to public radio station Kossuth on Friday, however, suggested a potentially gentler approach with banks and telcos.
"I am very hopeful that, unlike in the food market where we had to intervene, we will be able to reach an understanding with the (telecom) service providers," Orban said.
Banks, meanwhile, have remained profitable, he said, and it was therefore legitimate to expect them not to increase banking service charges.
Speaking in a video posted on Facebook later on Friday, Economy Minister Marton Nagy said the telecom companies had been given one week to outline what commitments they were willing to make on prices.
"We are seeing that in January and February, fees increased by nearly 16%. We're talking about the internet, television, and mobile service fees. And now, further price hikes are on the way ... This is unacceptable," Nagy said.
He said he hoped the government could negotiate what he called a "voluntary price cap" with the telecom companies.
"The government will decide whether the commitments made by market players are acceptable, or whether it will resort to regulatory measures," Nagy said.
Hungary's headline inflation rose to an annual 5.6% in February from 5.5% in January, above analysts' expectations.
In 2023 Hungary recorded the EU's highest inflation rate at 17%, while its food prices have posted the bloc's steepest rise between 2022 and 2024 based on Eurostat figures.
(Reporting by Gergely Szakacs and Anita Komuves; Editing by Joe Bavier)
