Brutal price hike in Hungary for Christmas again

Let’s go back to 1996, the last time when inflation was above 22 percent in Hungary. Seemingly, the rise of inflation has no end in the country, but the trend is slowing according to recent statistics. Despite the good news, there is still a possibility that the situation will possibly still worsen. Even if the trends are decelerating, there is no sign that they will reverse.

Food prices will still experience a sharp increase — told Péter Virovácz, the lead analyst at ING Bank to vg.hu. Over 60 percent rise in agriculture producer prices is predicted by indices. Other experts confirm these predictions and they tell that Hungarian inflation would be still exceptionally high. The mitigation of inflation comes from the relative stabilisation of the forint. Inflation will continue, but it will not be as high as in the previous two months.

Relative stabilisation

The slowing inflation comes from the fact that in November there were no drastic falls in economic indices. This caused relative mitigation in the worsening trends. However, this does not mean that the prices will fall, it just means that they will increase slightly slower. But, there is an unforeseen condition that adds about 2 percent to the already high inflation according to experts. The fuel price caps were suddenly phased out after shortages became widespread.

Read also: Breaking news! Orbán cabinet scraps the fuel price cap with immediate effect!

The sudden increase in fuel prices will cause another jump in prices, due to the rising cost of transportation. Inflation levels may peak at about 25.1 percent at the beginning of 2023, while by the end of the year it shall fall to about 8.9 percent. Therefore, the predicted annual inflation for 2023 is about 18.5, which is lower than the 2022 level, but it is still not ideal.

50 percent increase in prices

According to privatbankar.hu food prices have already crossed the 40 percent threshold in November. The Governor of the Hungarian National Bank, György Matolcsy predicted a 50 percent increase in food prices in the near future. Recent data shows that fortunately the 50 percent limit has not yet been reached, but, average shopping costs 44 percent more than last year. Just compared to last month, the average price increase was about 2.8 percent.

Thankfully, price caps are in force for the most basic products. The only problem is that often these products are not available and many shops had to introduce purchase restrictions for customers. The new slogan of the crisis, therefore, became:

“There is none, but at least it is cheap.”

The shortages are understandable as the price of milk, for example, rose by 121.2 percent since last year. This makes production unprofitable which causes shortages. At least sugar is cheap thanks to the price caps which are essential for the holiday season. Well, if you can find any.

Read also Central bank governor: Hungary is in a “near-crisis situation”

Source: privatbankar.hu, vg.hu

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1 Comment

Cataclysmic Capitulation: says:

09/12/2022 at 10:35

The broadsheet componentry that makes the economic & financial picture of Hungary, comprising of ALL the key signs, for Hungary, they ALL continue in a downward and worsening TREND.
Widespread social, economic, quality of life, increase of inflation, rises in cost of living, petrol, gas & electricity – all in the componentry that I refer, downward pricing will NOT occur in the “distance in time” in Hungary.
Nothing in Hungary – is getting CHEAPER.
Hungary has the HUMONGOUS problem, on top of its collapsing economy, of a Prime Minister – Victor Orban & his Government, that ATTACKS on them – centered muchly on core political ideas & philosophy of the Orban “bible” – the growing rapidness of full and directed RIGHFUL factual criticism of Victor Orban and his Government – continues to Smear & Damage massively – the name Hungary.
Isolated, Abandoned – through Victor Orban – that sadly is Hungary.
Hungary friendships we embraced & enjoyed benefited as a country from in numerous cases “time immemorial” that through this Victor Orban led “Dictatorial” Government, the European Union cataclysmic disaster exampled – the reputation of Hungary in wider Europe, our Global reputation, continues to be Destroyed Devastated – by the Orban Government.
Who are the (2) two friends of Hungary?
They ironically are DICTATORSHIPS being Russia & China.
Winter long dark and depressive for MILLIONS of Hungarians that the Nadir of our PROBLEMS – a guessing game.
Hungarians – are their MESSAGES being said to this Government – they have “Stuffed” our Christmas?
Certainly, no Turkey on this houses table – this year a possible in years to come.