Food price inflation accelerates in Hungary and reaches two-digit again – UPDATED

Despite government measures—criticised by some as ineffective interventions in the Hungarian economy—food prices continue to rise across the country.

Food price inflation accelerates in Hungary despite government measures

According to Blikk, annual food price inflation in Hungarian supermarkets returned to double digits in July. The report also notes that basic food items are becoming increasingly unaffordable, even for pensioners—a demographic the Orbán government claims to protect from the effects of relentless price hikes, as it enjoys its highest popularity among them.

Based on Privátbankár’s Árkosár (price basket) survey, the average grocery bill for a family now stands at HUF 38,703 (EUR 97), representing an 11% increase compared to last year. The steepest monthly rise was seen in potato prices, which surged by 35%. Bananas, tea, and dry pasta each became roughly 10% more expensive compared to June. Meanwhile, egg prices saw a notable decrease of 11.5%.

Long-term trends remain concerning. After three months of single-digit inflation, the rate has once again climbed above 10%, despite the government’s profit maximisation cap on several essential goods including food, medicine, and other staples.

• Fitch Ratings gives a devastating outlook for Hungary’s economy: low GDP growth, high inflation

Retail sales edge up 2.1% in May

Retail sales in Hungary increased by 2.1% year-on-year in May, according to data released by the Central Statistical Office (KSH on Friday. This growth rate remains unchanged after adjusting for calendar effects. Adjusted figures show food sales rose by 0.5%, non-food sales increased by 4.0%, while fuel sales declined by 1.1%. Online and mail-order sales, accounting for 8.1% of total retail turnover, rose by 4.8%. Sales at petrol stations dropped by 1.1%.