Good news: Sharp food price decreases in Hungary
The cost of living in Hungary has fallen noticeably since January. Food prices and utility bills have fallen substantially. However, price rises have not disappeared completely: washing and cleaning products have become more expensive, just like pet food. The latter is much more expensive than at the beginning of the year. Nonetheless, some food prices have gotten noticeably cheaper.
As we reported, in June, the Hungarian Central Statistical Office (KSH) recorded inflation at 20.1 percent. That is still well above the psychological limit. However, price growth slowed further compared to May, to 0.3 percent. The good news is that food prices fell further in June, by an average of 0.4 percent compared to May. Year-on-year, food prices are 29.3 percent more expensive than in June last year.
The price of food, which accounts for the largest share of Hungarian household expenditure, is falling. The decrease is helped by mandatory discounts in shops and the continued decline in world prices, as well as the normalisation of energy prices, napi.hu reports. Grocery shopping cost the most in January, with food prices in all categories already down noticeably in June compared to the first month of the year.
Trappista cheese prices are 30 percent lower
The biggest drop in prices was seen for dairy products. These, on average, cost 10 percent less than in the first month of the year. This is due to the fact that the price of raw milk has fallen sharply and significantly.
The biggest price drop is definitely for Trappista cheese: it is now 29.7 percent cheaper than in January. There was also a significant drop in the price of 2.8 percent ESL milk, down 10.1 percent in five months. The price of 1.5 percent ESL milk also fell, down 7 percent since January.
Compared to the first month of the year, butter is much cheaper, down 16.3 percent, and sour cream is down 10.1 percent.
How will the price of milk change after the price freeze?
As price caps will be abolished on 1 August, the now price-capped 2.8 percent UHT milk will get significantly more expensive. It is currently available at around HUF 250 (EUR 0.65) per litre. Without promotions, consumers can expect a price of around HUF 400-450 (EUR 1.04-1.17) per litre, taking into account the continued and significant fall in international raw milk prices.
No price increases for meat and cold cuts in the coming months
In June, the rise in meat and cold cuts prices also stopped. Some products are now 1-2 percent cheaper, mainly due to mandatory promotions. The end of the price freeze is expected to have a positive impact on the price of certain products, such as turkey breast or chicken legs.
Chicken price: what to expect?
Following the lifting of the price freeze in August, chicken breast prices could rise by around 77 percent. This means that the price of chicken breasts would increase by around HUF 1000-1600 (EUR 2.60-4.16) after the official price is lifted. We can expect to be able to buy them for around HUF 3000-3600 (EUR 7.79-9.35) from August.