Shocking: Shopping is a third more expensive in Hungary than in Poland

There are significant differences between food prices in Hungary and Poland. Prices in Hungary are, in some cases, 30-40 percent more expensive than in the Northern European country. Why exactly is that? Read on to find out.

Prices in Poland are much lower

Why are Hungarians food prices so much more expensive that those in Poland? According to napi.hu, experts say this is because the productivity of Hungarian domestic agriculture lags behind that of leading European countries. Even Poland, which is in the middle-ranks. Food prices started to rise in Poland in mid-2022 as well. However, it is still much cheaper to shop there than in Hungary, according to an analysis by novekedes.hu.

The economic portal has investigated the reasons for the sometimes seemingly unjustified price differences, taking into account several aspects.

VAT is also higher in Hungary

The analysis points out that the lower prices in Poland are only partly explained by the fact that the VAT on basic foodstuffs is zero, while in Hungary the predominant products are those with a 5 percent sales tax. The Polish VAT is 23 percent, compared to the Hungarian 27 percent. However, according to novekedes.hu, the differences are so large for the food products under investigation that they cannot be explained by differences in VAT only.

• Read also: Prices in Budapest are becoming unaffordable for Hungarians

The differences: milk

The portal’s investigation compared the original, not discounted, prices in Lidl’s Hungarian and Polish special offer magazines between 12 and 14 January. At Lidl in Hungary, a litre of one and a half percent milk costs HUF 399 (EUR 1). In Poland, each litre of half-percent milk costs HUF 271 (EUR 0.69). In other words, the price in Hungary is about a third higher.

The differences: cheese and margarine

A kilo of edam cheese costs HUF 4,316 (EUR 10.97) in Hungary. Meanwhile, in Poland, gouda cheese costs HUF 2,720 (EUR 6.91). That is even more than the difference in the case of milk, which is about 37 percent. In the case of margarine, you have to pay HUF 3116 (EUR 7.92). Meanwhile, in Poland, the price is HUF 2973 (EUR 7.56) per kilo. That is a five percent difference between the two prices.

• Read also: Food price rises in Hungary: the long-awaited turnaround is on the horizon

The differences: sausage, soft drinks and Chinese vegetable mix

The price of a pair of sausages available in Hungary is HUF 2897 (EUR 7.36). In Poland, home-crafted sausages cost HUF 2425 (EUR 6.16). In Hungary, a litre of apple and pear drink costs HUF 240 (EUR 0.61), compared to just HUF 125 (EUR 0.32) for a litre of orange or lemon drink in Poland. The difference is considerable, as soft drinks are 48 percent cheaper in Poland than in Hungary. The pre-packaged Chinese vegetable mix is the top performer: while it costs HUF 1999 (EUR 5.08) a kilo here, it costs less than half that price in Poland, at just HUF 962 (EUR 2.44).

Experts say this is because the productivity of domestic agriculture lags behind that of leading European countries, and even Poland. The main reasons are competitiveness and productivity problems, and lower sectoral competition.

Read alsoExperiment: Life in Hungary is more expensive than in Western Europe

Source: novekedes.hu, napi.hu