2024 to bring inevitable and brutal price hikes to Hungary
If anyone, we Hungarians know a thing or two about sudden price rises. Just when we thought we left the era of insane price increases in the past, it emerged that a further increase of up to 15% in the country at the beginning of 2024 is inevitable.
Logistics and transport in a rough situation
Logistics and transport were doing well during the Covid pandemic, due to optimal fuel prices and increasing consumption, in addition to the closures. According to Attila Katkics, logistics expert at SBS Cons., almost all market players recorded double-digit growth during this period, which provided opportunities for both development and expansion.
The industry’s success in 2022 was already cracking, thanks to the Russian-Ukrainian war. At the same time, industry players agree that consumption had not fallen dramatically. This, for a time, offset rising energy, fuel prices and logistical difficulties. The equilibrium then allowed firms to make an unprecedented price correction. However, it is now clear that rising costs and falling consumption have made a further price increase necessary.
15% price increase to fuel inflation
“It is inevitable that at the beginning of 2024, there will be another increase in the cost of freight transport, which could exceed 15%,” said Mr Katkics in the latest podcast of Economx. He pointed out that the price increase will not increase the extra profit of companies. Rather, it is purely to cover costs.
The most tangible reason, he said, is the massive increase in Hungarian and German tolls. This is not only disproportionate, but also problematic because the two are realised one month apart.
Attila Katkics made it clear that price increases in the logistics sector will further fuel the already high inflation. Moreover, it is certain that consumers will end up paying the increased costs. The expert also said that there was a huge need for public support to finance alternative energy trucks, as this would not only optimise costs but also focus on sustainability.
Transport to become extremely expensive
According to Index, the Hungarian Road Transport Association (Közúti Fuvarozók Egyesülete) reported in August that freight transport could become up to five times more expensive in the coming months. Experts believe that food, household appliances and furniture could soon become more expensive due to soaring transport fares. Hauliers are calling on the government to review the toll system.
Some people have not been scared by the sky-high prices: as we reported HERE, Hungarians spend a lot on prostitues’ services.