Good news came from Hungary’s economy: price decreases will come

The price of a basic foodstuff is expected to decrease significantly in Hungary. But that is not the only good news in that regard. Read more below.

According to Világgazdaság, a government-close, economy-focused Hungarian news outlet, the next few months will see a price correction regarding the cost of onion. The price of the foodstuff started to soar in 2021 because of the increasing fertiliser and pesticide prices and the war. Because of that, less onion was planted, and the devastating drought reduced yield by 20 percent. However, now István Varga, the vice-chairman of FruitVeB Hungary, expects a 20-30 percent decrease in consumer prices in the next couple of weeks. But that is not the only good news from the Hungarian economy.

Retail sales down 10.1 percent in February

Hungarian retail sales fell by an annual 10.1 percent in February, the Central Statistical Office (KSH) said on Thursday. The data showed the same decline when adjusted for calendar-year effects, KSH said. Food sales dropped by 8.6 percent, while non-food sales were 9.8 percent lower, MTI wrote. Meanwhile, motor fuel sales dropped by 14.5 percent. In the first two months of 2023, retail sales fell by an annual 7.3 percent when adjusted for calendar-year effects, KSH said.

Hungary trade balance returns to surplus

Hungary had a 513 million euro trade surplus in February, the Central Statistical Office (KSH) said on Thursday. Until February, Hungary, an export-driven economy where trade surpluses are the norm, had trade deficits every month for a little more than a year and a half. Exports rose by an annual 10.5 percent to 12.6 billion euros, while imports increased by 3.8 percent to 12.1 billion. Trade with other European Union member states accounted for 78 percent of Hungary’s exports and 68 percent of its imports during the month.