Food shortages may hit Hungary because of the new price caps
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The government is preparing to extend the food price cap scheme, PM Viktor Orbán cleared in his interview in the Kossuth Rádió, Hungary’s public broadcaster. However, he did not tell which products would be concerned. The reason is the skyrocketing food prices, reaching more than 35 percent, based on the Hungarian Central Statistical Office (KSH). However, experts agree that food price cap scheme extensions may bring shortages instead of decreasing prices.
Hungary is among the countries with the highest food price rise rate. In September, the KSH reported a 21.1 percent average and 35.2 percent food price inflation. Meanwhile, Eurostat said the latter rate was 39 percent in Hungary, which is the worst in Europe. Lithuania is in second place, but the food price rise is “only” 29.5 percent. In Poland, that rate is 19 percent, while the EU average is 15.8 percent, Népszava wrote.
The reasons are the ongoing war in Ukraine and the summer droughts. Meanwhile, in Hungary, forint weakening, the government’s pre-election money distributions and the price caps also play crucial role. PM Orbán regularly says the anti-Russia EU sanctions caused the food price rise. But the government introduced them on seven basic food items (wheat flour, sunflower cooking oil, granulated sugar, pork thigh (leg/hock), chicken breast and 2.8% fat cow’s milk) on 1 February. The Russian invasion in Ukraine only began on 24 February.
These food items cannot be sold for more than their October 2021 price, so the retail sector has a massive and growing loss on them. For example, the production cost of the chicken breast is currently HUF 2,009 (EUR 4.87) per kilo, while its consumer price is only HUF 1,564 (EUR 3.79). Of course, the retail chains do not swallow that difference. They increase the prices of other food products more to compensate. That is why the government could not curb the food price rise in Hungary.
Well it is good to read the rational and logical problems Victor Orban is creating here in Hungary all I would say is, what is he doing to the country? is he taking it back 30 years and creating his own little world as Putin has done while grasping hold of bieng a member of the EU and NATO.. could he be a turn coat, time will tell. He just knows Hungary has nothing to offer the world but land and slave labour under it’s 2 tier minimum wage and 27% vat on nearly everything you buy and use.. what a mess this country has become to live in. Let alone the inflation.. but one thing is for sure no political party or person will suffer only the people and they are serving. thank you for reading my disappointments with this lovely country..