Rising food prices in Hungary spark concern, many shop abroad for groceries
Hungarians are facing a sharp increase in food prices due to government price freezes. As costs double compared to six years ago, some are shopping in Slovakia for cheaper goods, though not all items offer significant savings.
Index reports, that according to the Hungarian Central Statistical Office, a noticeable increase in the price of basic food items occurred between June and July. Flour prices rose by 38.1%, sugar by 13.9%, and cooking oil by 9%. These increases were the result of price freezes and compulsory measures introduced by the Hungarian government. The Hungarian Competition Authority also investigated the price hikes, as reported by RTL Híradó, overall, experts say that food prices increased by approximately 2.7%.
Compared to 2017, prices in Hungary have risen more sharply than elsewhere in the European Union, according to Péter Szász, an analyst at Portfolio. He explained, “now that the government has fully removed these restrictive measures this summer, the prices of products previously under price freezes have typically surged.”
Illustration: Pixabay
By 2023, food prices in Hungary had doubled compared to six years earlier, and the increases were already accelerating before the Russia-Ukraine war. Meanwhile, the average rise in the European Union was around 40%. Szász pointed out that the energy crisis, war, supply chain issues, and weather conditions have impacted the entire European market. However, Hungary has experienced especially high food inflation, with prices exceeding a base increase of 40%.
Two years ago, György Matolcsy, the governor of Hungary’s central bank, stated that price freezes contribute to inflation. He argued that they make substitute products more expensive, such as fat being used instead of oil. Matolcsy said, “price caps cause a loss of 3-4%, meaning an inflation surplus, so all price caps should be removed immediately.”
Is it worth shopping abroad due to rising food prices?
Photo: Wikimedia Commons /GD137NB
A few months ago, the Slovakian Kaufland began attracting Hungarian shoppers with a special offer magazine in Hungarian, featuring prices in forints, as we previously reported. Telex compared prices between Tesco in Győr and Kaufland in Nagymegyer.
They write, for example, that white flour costs more than double in Hungary compared to Slovakia, and a 350-gram jar of jam with 75% fruit content is one-third of the price in Slovakia. Due to high excise duties, spirits are traditionally cheaper in neighbouring countries, with a litre of Jägermeister costing nearly half of its price in Hungary. Other notable price differences include laundry detergent, where the price gap ranges from 35% to 21%, translating to savings of HUF 1000-2500 (EUR 2.5-6.3). Even a short trip across the border could save significant money, with a bottle of olive oil alone saving HUF 1500 (EUR 3.8).
However, Telex also noted certain items are not worth buying abroad despite the rising food prices in Hungary, such as flour, potatoes, sugar, dairy products, pork legs, and chocolate.
In summary, the portal suggests that while bulk weekend shopping in Slovakia might not lead to significant overall savings, certain products offer enough of a price difference to make it worthwhile, especially if purchased in large quantities.
Read also:
- Temporary relief: inflation in Hungary eased in August – Read here
- Hungarians go shopping abroad because Hungary became too expensive – Read here
Featured image: depositphotos.com
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5 Comments
The Real Person!
The Real Person!
The high inflation is the result of the Election Bribes the Viktator poured before the last election and high taxes.
The Real Person!
The Real Person!
GROWING rightfully in thousands daily of Hungarians, from “all stations in Life” – cities, towns, villages and hamlets – the Rip Off that has been GOING on over years by the Orban – Fidesz Government – driven by there DOUBLE Dipping of taxes on food in particular, the VAT at 27% componentry – which Hungarians have been continue to be SLUGGED and Exploited by the Orban – Fidesz Government.
THINGS are NO Longer percentage cheaper in groceries purchased in Hungary, that post February 2020 – under the wrongful interference by the Orban / Varga “ill-fated” price freeze on food items that FOOD has just continued to RISE in Hungary.
Orban / Varga – they DOUBLE “hit us” on taxes for the NEEDS of our Daily Life living.
REMEMBER – the 27% componentry of VAT – goes straight into the POCKET of the Orban – Fidesz Government.
NOTHING as will INFLATION go LOWER in Hungary and PRICES will CONTINUE to RISE.
The Real Person!
The Real Person!
I couldn’t believe the price of jam in Hungary. It did also increase where I am in Canada but it is now much more expensive to buy a jar of jam in Budapest than in Canada. Personal care products like deoderant, shampoo, toothpaste etc are all more expensive in Hungary than Canada. The Fidesz government has been meddling in the Hungarian economy so that you no longer have an efficient free market and that as well as the highest VAT in Europe causes higher prices. Hungarians need to wake up and turf this corrupt government out.
The Real Person!
The Real Person!
Wait. @Larry. Meddling in the economy? Price controls and caps? That´s utterly Socialist-Marxist!
The Real Person!
The Real Person!
In Austria, Italy and Germany over the having a holiday till 1st October 2024.
Austria – Innsbruck, Italy – Trento & Bolzano and now Erfurt in Germany.
We book apartments preferring to 95% of time cook what we wish to Eat and therefor DO lots of Supermarket Shopping.
I have used this platform numerous times over the last 5 years from the vastness of our travel experiences travelling from our house in Budapest around Europe.
SIMPLE – over the course of the past 5 years – pricing in open markets and supermarkets – Hungary is NO longer substantially under priced compared to “other” countries.
Hungary in FACT use PASTA bread, butter, milk as examples – the Hungarian prices are more EXPENSIVE than “other” European countries, like, Austria, German, Italy, France & even Switzerland.
Previously highlighted that the CHOICE in supermarket shopping in Budapest, Hungary – is overall SECOND Class – somewhat the “left” overs and NO “special” treatment(s) – of food and produce type.
Orban – the Fidesz Government – there DOUBLE tax(s) on Food charged inclusive of the 27% Vat – APPALLING and EXPLOITATION of the Hungarian People.
Inflation – will continue to rise in Hungary as WILL the Cost of Living – Supermarket Shopping and “other”.
NOTING is going to GET CHEAPER in Hungary.