Despite the price cap on some basic food items, life is becoming more expensive in several places. Although the price of petrol is not rising in Hungary, transportation is more expensive. The coronavirus, the Russian-Ukrainian war, inflation, and the unstable Hungarian currency all add to the rise in prices.
Uncertainty in Ukrainian and Russian grain exports is pushing up grain prices. This has a noticeable effect on animal husbandry as well, writes index.hu. As domestic professional producers usually procure the raw materials needed for animal feed one year in advance, there is no need to fear domestic grain shortage for the time being.
Livestock farmers are worried that crop producers hoping for higher prices will not sell their products even above the market price.
For a month now, pig farmers have said that it is cheaper to transport pigs ready for slaughter from Belgium to Hungary than to produce them at home. It is also a problem that the rise in prices due to the war coincided with the end of the crisis of overproduction. It is still unknown how the market will react to the Easter period and the increased demand.
The Hungarian government has capped the price of some basic food items in Hungary. They did the same for the price of gasoline. However, rising freight rates are felt everywhere.
Shipping costs have risen, shipping has slowed down, and fluctuations in the euro exchange rate also affect purchase prices.
Attila Fazekas, a confectioner, believes that the supply may change due to this. We may see fewer cakes with more expensive ingredients, such as fruit and chocolate, while cheaper cakes, which contain cottage cheese, poppy seed, and cinnamon, could come to the front, writes 24.hu.
According to the latest inflation report of the CSO, inflation in Hungary has not been this high since 2007. The research of pénzcentrum.hu found an increase of at least 15% in the price of more than 50 products in the last year. The price of strudel flour, light flour and wheatmeal flour rose the most. However, the price of cheese and acacia honey has also increased significantly.
Source: index.hu, 24.hu, Pénzcentrum