Are eateries and ice cream shops at Lake Balaton trying their best to keep prices low?

As summer heats up, ice cream lovers may find their favourite treat becoming more expensive by Lake Balaton. Analysts at the Oeconomus Economic Research Foundation have indicated that ice cream prices are projected to rise by 10-15 percent this year compared to last. Despite these increases, many vendors are striving to keep their prices within a range acceptable to their customers.

Ingredients still face a price hike

As Economx reports, Bence Jóna, an analyst at the Oeconomus Economic Research Foundation, highlighted significant price increases for sugar and cocoa in April, with year-on-year rises of 30.4% and 9.2%, respectively. While global food prices started to decline from the second half of 2022 onwards, sugar prices have only recently started to moderate.

This trend is mirrored in Hungary, where flour and dairy product prices have decreased, but sugar continues to rise sharply. The global market’s downward trend cannot be felt in Hungary yet, thus making it impossible for domestic ice cream makers to keep their prices unchanged.

Trying to keep prices reasonable

Besides changes in raw material prices, other factors such as higher operating costs (overheads, rent) and increasing wages due to labour shortages could lead to price hikes in ice cream shops and beach food eateries. Although these pressures have slightly eased compared to 2023, businesses often cannot pass on these costs to customers due to price sensitivity. Thus, beyond a certain price point, demand would significantly drop. Experts advise business owners to raise their prices reasonably to avoid scaring away customers.