Sad news: Drastic growth in prices continues in Hungary
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One of the most significant rises in prices in the EU has been happening in Hungary for years already.
As the world slowly reopens and people will have the possibility to travel and go on holidays this summer, we should expect a significant rise in prices almost everywhere. Entrepreneurs in the hospitality sector, for instance, will have to try to make up for the losses of the past year due to the pandemic.
Consequently, Lake Balaton is already filled with tourists, but people have to prepare for quite shocking prices.
Hotels and accommodations are just one aspect when we talk about price changes. It is more alarming that essential food items in Hungary are being sold for drastically higher prices.
Many people could feel this increase in the past weeks, 24.hu writes why.
The Central Statistical Office reports a 5.1% inflation for April.
This means that prices have increased by this percentage compared to costs of the same good from the same month of last year. Economists were expecting a constant increase in prices, however, this number even exceeded their expectations. Furthermore, this data is the highest from the past eight years.
The inflation rate of April exceeded that of March, which stopped at 3.7% and even topped the expectation of the market consensus. On the other hand, the increase itself was not unexpected. The Hungarian National Bank warned for the rise in the upcoming months.
As Sándor Jobbágy, leading macroeconomist of Concorde Értékpapír Zrt. said:
“It is a crucial question in Hungary as well, not only in the world’s leading economies, how consistent the factors influencing the inflation increase will be.
Factors that are mostly linked to the reopening of economies of given countries. The data from March and these influencing factors did not worsen very much. Quite a big part of April’s inflation was due to the rise in taxes on alcoholic beverages and tobacco, together with the increase in fuel prices.” Based on current estimations, these prices will further increase.
Lehel Market – prime example outside store on entry to market – seen Roast Chickens in price – INCREASE – from March 2021 – 1300 huf – to May 19th 2022 – 1800 huf = 500 huf INCREASE in Price.
Roast Chicken increases – plus other food and vegetables plus Meat and supermarket shopping – inflation increase and no measures from this Government to stem and control inflation, will see cost of living RISE.
Life never gets any CHEAPER.
Core CPI inflation in the US rose by 4.2% last month. Even if volatile priced products such as food and fool are removed from the equation, prices still rose by 3%. Generally speaking US inflation is a harbinger of what will happen elsewhere. On the plus side, people with savings and investments in bonds can expect higher yield. On the negative side, people and governments with loans will be paying more, but these low interest rates over the last few years were an anomaly and bound to end sooner or later.