Food inflation in Hungary is decreasing: these products became cheaper

Food inflation in Hungary decreased from 44 percent in January to 43.3 percent in February. Among others, dairy products have become cheaper. However, despite the fact that price increases have slowed down, dairy products are still the most expensive of all foodstuffs.

The increase in food prices has moderated

While the price increase measured from January to February 2022 was still 2.1 percent on average, the same figure decreased to 1.7 percent in the same period of 2023, writes hellovidek.hu.

“Of course, there are exceptions, such as the coffee consumed by many of us, which rose in price by 6 percent from January to February”, senior agricultural analyst Csaba Héjja pointed out. According to the February data, the monthly price increase for dairy products was well below the average. Both the prices of Trappista cheese and sour cream have fallen. “The latter trend may continue in the near future, as European milk and milk product prices show a greater decrease than domestic ones. The main reason for this is the small oversupply due to the expansion of milk production and the decrease in demand”, added Csaba Héjja.

Which food products are the most expensive?

Compared to the same period of the previous year, dairy products continued to rise in price the most. Although price increases have slowed down, dairy products are still the most expensive of all foodstuffs. In the case of dairy products, the price increase of 70 percent in one year is followed by baked goods and sweets, as well as spices, with an increase of 50 percent. However, a slightly smaller price increase of 37 percent took place in the case of meat in one year.

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Food prices may peak in March in the stores

“According to our previous estimates, due to the higher benchmark and other determining factors, store food prices may peak in March, and the domestic and international drop in grain prices also predicts this,” Csaba Héjja said. “However, this does not mean that we will be able to buy food for the same price as before the drastic price increase in 2021.”

Analysts from MKB Bank and Takarékbank’s Agricultural and Food Business Branch highlighted that energy prices are decreasing on the world market. In addition, due to the decrease in gas prices, the price of fertiliser is also lower, which eases the pressure on production costs. The easing of recessionary expectations and the strengthening of the forint also point to the fact that there is no need to expect further drastic food price increases.

• Read also: Here is how fuel prices will change in the coming week in Hungary

Szentkirályi: “Inflation is decreasing in Hungary!”

The Hungarian government constantly monitors inflation data and responds to them with various measures, writes liner.hu. “Government measures are working, the trend has reversed! Inflation is decreasing in Hungary!” Alexandra Szentkirályi, government spokesperson, wrote in her post on her official Facebook page.

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Source: hellovidek.hu, liner.hu