BUDAPEST: Hungary's government plans to raise household natural gas prices by 10-11 per cent in July and a further price hike is likely to come in October, daily newspaper Nepszabadsag reported on Saturday.

The paper said, citing unnamed sources that the original proposal was for a price rise of 12.4 per cent for households but the ruling Socialists want a smaller hike of around 10 percent. Gas prices for industrial users would go up by about 8 percent from July.

The last price hike was in April when gas prices for households went up by 5.8 per cent, the paper said. Hungary's annual gas consumption totals about 14 billion cubic metres, most of which is covered from imports, primarily from Russia. Import prices have surged as a result of a sharp rise in global energy prices.

Hungary's annual headline inflation rate edged down in April, to 6.6 per cent from 6.7 percent in March, but food prices continued to soar and there is a risk next month that rising energy costs will continue to put pressure on prices. The statistics office said earlier this week, when it released April data, that it expected piped gas prices and petrol prices to rise further which would fuel inflation pressure.