Early 2025 set to bring sharp price hikes in Hungary: Is your wallet ready?
Hungary may face substantial price hikes in early 2025, according to the latest inflation report from the Hungarian National Bank (MNB). Companies, grappling with rising costs, are anticipated to implement noticeable price adjustments in January, following months of suppressed consumer price growth.
Companies absorb costs, but for how long?
In recent months, firms have managed to offset climbing expenses by reducing profits rather than hiking prices. According to HVG, import prices have been steadily increasing since May 2024, and industrial production costs have been rising since mid-2023. Yet, consumer prices in sectors like durable goods even dropped slightly—down 0.6% from July to November 2024. This apparent resilience is largely due to intense market competition. Companies in highly competitive industries have prioritised retaining customers over maximising profit margins, keeping price growth minimal. For instance, profits in pasta and preserved flour products surged by 265% and 107%, respectively, between 2022 and 2023. Since May 2024, however, prices in these categories fell by 4.1% and 4.5%. Similarly, telecom companies reduced service fees by 7% in autumn 2024, following a 105% profit boost over two years.
Early 2025: A turning point?
Despite these efforts, the MNB warns that the current trend may not endure. Businesses in the retail and service sectors have revised their price expectations upwards, signalling a shift from the moderate outlook of early 2024. Analysts fear that prolonged cost increases in imports and production could eventually trickle down to consumers. The inflation outlook for 2025 remains uncertain, with forecasts ranging from an optimistic annual average of 3.3% to a pessimistic 4.1%. Experts agree that inflation will likely peak in the year’s first few months before stabilising later. The degree of January price hikes by companies will play a pivotal role in determining whether the current slowdown in profit-driven inflation becomes permanent.
Price hikes: Why monitoring prices matters
The MNB urges consumers to closely monitor early 2025 price changes, as these will offer critical insights into the trajectory of Hungary’s inflationary trends. While recent price drops in some sectors have provided relief, sustained cost increases could soon create a ripple effect across the economy. The stakes are high as the nation braces for the economic challenges of the new year, with household budgets likely to feel the pressure.
Read also:
- Is the Hungarian economy set to revive in 2025 after years of stagnation?
- Shocking decline: How Hungary fell behind its neighbours after joining the EU
Featured image: depositphotos.com
Expected.
Orban Government – “paralyzed” to control it.
My platform remains – that has CHALLENGED the INFLATION reports in Hungary, in particular post the Covid CRISICS – that I believed have been when released DOCTERED, interfered with by the Orban Government, reporting what THEY want Hungarians to BELIEVE and not FACT.
Petrol – “sky’s” the limit likely in price.
NEEDS of every day by Hungarians – NOT wants but Daily NEEDS – remains under massive pressure to sustain pricing levels across the board – in the daily needs, the family NEEDS of Hungarians.
Supermarkets are NOT getting cheaper, our Fresh Fruit and “other” produce markets are not getting cheaper.
REMAINS with me – make worse by the FACT that our Economy in Hungary, the de-valuation of the forint, and that we are an IMPORTER country, that as the forint FALLS the purchase of of our NEEDS – cost of IMPORTATION gets INCREASED.
NOTHING – in the NEEDS of Hungarians is GOING to GET Cheaper.
Don’t be FOOLED of basic pay ????? promised Increase in 2025.
That’s – CRAP.
Propaganda “fueled” mis -truths arising out of the Orban – Fidesz Government.
Misleading.
It will be EATEN up by simple FACT of the on-going RISING costs, just not in the daily NEEDS of Hungarians, but across EVERYTHING – in Hungary.
We can’t STOP being IMPORTERS.
Expected.
Orban Government – “paralyzed” to control it.
My platform remains – that has CHALLENGED the INFLATION reports in Hungary, in particular post the Covid CRISICS – that I believed have been when released DOCTERED, interfered with by the Orban Government, reporting what THEY want Hungarians to BELIEVE and not FACT.
Petrol – “sky’s” the limit likely in price.
NEEDS of every day by Hungarians – NOT wants but Daily NEEDS – remains under massive pressure to sustain pricing levels across the board – in the daily needs, the family NEEDS of Hungarians.
Supermarkets are NOT getting cheaper, our Fresh Fruit and “other” produce markets are not getting cheaper.
REMAINS with me – make worse by the FACT that our Economy in Hungary, the de-valuation of the forint, and that we are an IMPORTER country, that as the forint FALLS the purchase of of our NEEDS – cost of IMPORTATION gets INCREASED.
NOTHING – in the NEEDS of Hungarians is GOING to GET Cheaper.
Don’t be FOOLED of basic pay ????? promised Increase in 2025.
That’s – CRAP.
Propaganda “fueled” mis -truths arising out of the Orban – Fidesz Government.
Misleading.
It will be EATEN up by simple FACT of the on-going RISING costs, just not in the daily NEEDS of Hungarians, but across EVERYTHING – in Hungary.
We can’t STOP being IMPORTERS.