Hungary has the highest price increase in the EU
Based on the latest report of the Hungarian Central Statistical Office (KSH), Hungary and Poland had the highest inflation rates in 2021. According to domestic data and Eurostat analysis, many goods and services in Hungary have become significantly more expensive. In many cases, the rate of increase is reminiscent of the 1990s. This trend is forecast to continue this year.
Huge price increase in Hungary
In 2020, prices in the EU Member States increased by 0.7 per cent on average, and by 2.9 per cent in 2021.
Hungary and Poland recorded the highest price increases.
In both countries, prices rose by 5 per cent. The last time such a massive price surge occurred in the EU was in 2011. Several eastern member states have seen significant price increases. Lithuania, Estonia and Romania all recorded price rises of over 4 per cent.
Food prices in the EU increased by 1.6 per cent on average, portfolio.hu reports. In Hungary, this figure was double. Prices of catering and accommodation services also increased significantly. The EU average was 2 per cent, while in Hungary it was 5.5 per cent. Demand increased both domestically and internationally as the epidemic eased.
The rate of inflation in Hungary has not been this high since 2007.
All products become more expensive
In general, all goods and services have become more expensive over the past year. Food prices rose by 4.1 per cent, while consumer durables increased by 4.5 per cent.
The price of fuel (23 per cent) and tobacco products (17.5 per cent) were the most expensive.
The price of wheat per tonne has risen from HUF 68,000 (EUR 182) to 100,000 (EUR 268) in a year. Hungarian wheat is of good quality, which is why it is often exported. In addition, large grain-producing countries produce less, so demand is even higher.
The inflation rate has not been this high since the 1990s.
Fuel prices have risen steadily. As a result, the government has capped the price of 95 petrol and diesel per litre, napi.hu reports. The price of second-hand cars has also increased significantly.
In the list of services, the price of maintenance services rose the most. However, household appliance repairs and vehicle repairs also increased by more than 8 per cent.
Source: napi.hu, portfolio.hu