Among all the things that got expensive, probably the most tragic one is pizza. The newest victim of the economic crisis is everyone’s favourite comfort food. Inflation and the drastic decrease in agricultural output caused a price hike like in many other cases. But why is Hungary experiencing the hight price increase in the whole of Europe?
Even in Italy, the home of pizza, prices have only increased by a quarter of the price hike here in Hungary — reports Szeretlekmagyarorszag.hu. In Hungary, pizza prices have increased by 33.4 percent in just one year. This is the highest rate anywhere in Europe, according to the Vakmajom blog. In Italy, prices have only increased by 7.5 percent, which puts the difference in inflation at 27 percent. If we combine this with the depreciation of the forint, then we can see a weird effect. Over the past year, pizza in Italy became cheaper for Hungarian customers.
In Hungary, the average price for a pizza is about HUF 3,500 (EUR 8) while in Naples for example, it only costs about HUF 2.500 (EUR 6). So, it is not just an illusion, pizza is cheaper in Italy than in Hungary. But it also got even relatively cheaper compared to the previous year due to inflation. Pizza prices increased more in the past year than the forint had devalued compared to the euro. However, this is true for many items too and during a vacation, it can really make a difference.
The reasons are quite obvious as to why pizza prices increase. Agricultural production had seen one of the worst years this summer. There was widespread drought and the lack of access to the products of two larger exports Russia and Ukraine caused significant price hikes. But the question still lingers on: why is it so much worse in Hungary? There is no easy answer to this yet and it still remains a mystery as to why Hungary is such a peculiar case in this matter. Pizza prices are not the only ones that are breaking records in Hungary as more and more essential items become luxury commodities.
Life is becoming increasingly hard for many in the country. There is no sign of relief so far as inflation has surpassed the 20 percent threshold in September. Pizza is not the first and it will not be the last item to break price records in Europe.
Source: Szeretlekmagyarorszag.hu, Facebook.com