Hungary’s economy in shambles: recession, persistent inflation, empty shelves
Even though the government is trying very hard to convince citizens that everything is okay with the Hungarian economy, every single one of us can feel on our own skin that it is just not true. Even according to official data, Hungary is battling with stagflation: high inflation combined with slow economic growth or even recession, and high unemployment.
Stagflation in Hungary
According to official data, there is stagflation in Hungary. This means an economic situation where inflation remains at a persistently high level despite a significant slowdown and a decline in household consumption, 444.hu reports.
Two of the three necessary elements have been met so far. The inflation figure for October published by the Hungarian Central Statistical Office (KSH) is a shockingly high: 21.1 percent. Within this, food prices rose by around 40 percent. This puts domestic inflation among the highest not only in the region but also in Europe.
People have to spend more money on fewer things
The retail sales data for October are not yet known. Nonetheless, September was the fourth month in a row where consumption failed to keep up with inflation. This means that we were worse off. People are spending an incredible amount of money in the shops. According to KSH data, people left HUF 133 billion (EUR 323 million) more at the checkout than in September last year. Meanwhile, the amount of food they bought fell by 2.8 percent.
Recession is just around the corner
According to expert Gergely Suppan, further contraction is expected in the next two quarters due to: falling real wages due to rising inflation, higher-than-average increases in household energy prices, power cuts due to energy costs rising several times as much for businesses, municipalities and public institutions, and steeply rising interest rates. In other words, a technical recession seems inevitable.
Shortages to be expected due to price caps
Sensing a problem, the Hungarian government decided to extend the price freeze on certain basic foodstuffs. The price restrictions now also apply to chicken eggs and potatoes. This has already resulted in a mostly deficit economy.
Just as sugar and milk run out of the shelves in no time due to the impact of the official price, the fixed price of fuel is causing shortages. This is also likely to happen for eggs and potatoes, as several shops have introduced quantity limits for these products. For example, in Tesco stores, a customer can buy up to two kilos of potatoes and one box of eggs at a time.
Source: 444.hu, vg.hu, DNH
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1 Comment
Applaud DNA on the HEADLINES of this article.
Hope NO ramifications from the Orban “dictatorial” Government.
Commentators in articles put up by DNH – since post February 2020 – in particular been putting Hungary “on notice” of SHAMBOLIC times – FINANCIAL Personal Hardships ahead.
Those CONSTANT warnings ISSUED – prior to our FRIENDS – the Russian War on the Ukraine.
History never Lies.
Hungary we are being Governed as a Dictatorship and in times like we are LIVING in, in is, and HISTORY proves it, we the CITIZENS in millions in Hungary – we are getting “SMASHED” by this Orban Government.
Winter – no European Union Funding – we KNOW factually who is to BLAME for this SITUATION – and the PERILOUS – the accelerating receding DEEPS of our Economic & Financial “Black Hole” as a country we DESCEND.
Propaganda driven just part of the CREED of the Fidesz Political Party – we continuously get BOMBARDED in its use, likened to its use in 1939-1945 by Germany in the Second World War.
Propaganda – the removal of FACT – of Truth, the falsification of Events and Situations and CANDOUR.
Hungary – keeps GROWING in Front of our VERY own Eyes:
“When the YOKE is BROKEN,
the BURDEN is REMOVED.”
Yoke who is it?
Burden who is it?
Don’t need to be a Rhodes Scholar to answer that question.
Time HAS Cometh – for MASSIVE need of SOLIDARITY to enforce rescind and bring about CHANGE in Hungary – even in these DARKENED hours and days and immediate FUTURE.