BUDAPEST (Reuters) -Hungarian government measures launched over the summer, such as public sector wage hikes, housing support for civil servants and a subsidised mortgage scheme could boost households’ net income by 1.5% of economic output in 2026, the central bank said.

In power since 2010, eurosceptic Prime Minister Viktor Orban faces what political analysts say could be his toughest election next year, with the economy stagnating and stubborn inflation preventing interest rate cuts.

Orban aims to fend off a challenge from a surging opposition rival with large-scale tax cuts for families, cheap loans to first-time home buyers and pension rises.

“The additional incomes are expected to lead to an increase in consumption,” the bank said in its quarterly inflation report on Thursday, addi

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