No dramatic price rises, some products will be even cheaper in Hungary from August

The Hungarian government has decided to scrap the food price cap in August. However, it is unlikely that this move will increase prices drastically. On the contrary, we will be able to find products available at lower prices.

The price cap will be lifted

The Hungarian government has extended the law on food at public prices until 31 July, when it will be repealed. This led many to believe that the prices of food products that had been subject to mandatory special offers would rise dramatically, but this is not the case. In fact, with the exception of product, prices will drop.

Under the regulation, the market prices of the eight food products concerned will be restored in two stages, not immediately, but after a transitional period. The government regulation prevents traders from reacting to the abolishment of the regulation with significant price increases.

Traders can apply higher margins, but a real price rise is expected from October. In addition, under a new regulation introduced by the Hungarian government in June, they will have to offer two products a week at a discount of at least 15 per cent.

Gradual return to the market price

The official price was in force for a year and a half. Inflation has hit record highs and food prices have risen at an unprecedented rate. If the price cap had been lifted prematurely, prices would have tripled for all the foodstuffs concerned.

Data from the Institute of Agricultural Economics (AKI) show the retail prices of all products. Although the abolition of the price cap would have resulted in a significant price rise even a few months ago, the global market developments, i.e. the normalisation of energy costs and the months-long significant price drop of agricultural commodities, have now been reflected in consumer prices, napi.hu reports.

How much products will cost?

• 2.8 per cent UHT milk: HUF 275-300 (EUR 0.73-0.8) (currently HUF 300),
• Sunflower oil: HUF 420-480 (EUR 1.12-1.28) (currently HUF 744),
• Wheat flour: HUF 185-210 (EUR 0.49-0.56) (currently HUF 230)
• Pork leg: HUF 1,600-1,700 (EUR 4.50) (currently HUF 1,600)
• Chicken breast: HUF 1,750-2,100 (EUR 4.67- 5.6) (currently HUF 1,800)
• Eggs, 10 pieces (packer’s delivery price): HUF 580-700 (EUR 1.55-1.87) (currently HUF 900)
• Potatoes (wholesale price): HUF 400-500 (EUR 1.2) (currently HUF 500)

So milk, cooking oil, wheat flour and eggs will also be cheaper, while breadsticks, chicken breast and potatoes will more or less retain their prices.

However, the situation is different in the case of granulated sugar. The retail purchase price is not publicly available, but experts estimate that it could rise to HUF 600-700 (EUR 1.73) per kilo.