Funeral costs in Hungary skyrocket amid inflation: A call to plan ahead
In Hungary, funeral services have seen price increases significantly above the average inflation rate. Over the past year, the costs of both traditional burials and cremations have risen by around 10%. According to Katalin Palkovics, president of the Hungarian National Association of Funeral Service Providers, these increases are driven by higher prices for essential materials, energy, and labour—costs that providers have had to pass on to customers.
Many Hungarians unprepared for a funeral’s financial burden
This sharp rise in expenses, coupled with a severe labour shortage in the sector, makes it increasingly difficult for families to finance burial services, according to Pénzcentrum. Gergely Novák, owner of Télizöld Funeral Service Plc., noted that many Hungarians are unprepared for the financial burden of a funeral, which can place significant strain on family budgets. His company has recently launched an online service allowing clients to handle all funeral arrangements from home, a step towards modernising the industry and making the process more accessible.
In July 2024, consumer prices in Hungary were 4.1% higher than a year earlier, with services seeing a 9.1% increase. However, burial services have outpaced these figures, with a traditional burial now costing an average of HUF 442,080 (EUR 1,121), up 9.65% from HUF 403,500 (EUR 1,023) last year. Cremations have similarly risen by 10.44%, now averaging HUF 318,820 (EUR 808).
The growing preference for cremation is also notable, driven by its lower cost, smaller environmental impact, and reduced long-term expenses. However, the price gap between traditional burials and cremations has widened to over HUF 123,000 (EUR 312), reflecting the ongoing financial pressures in the industry.
Rising costs of raw materials, labour, and energy
Palkovics highlighted that the rising costs of raw materials, labour, and energy are significant factors behind these price hikes. The funeral industry, reliant on skilled and emotionally resilient workers, is facing a critical shortage of new entrants. This shortage is exacerbated by the physically and emotionally demanding nature of the work, along with limited career prospects and training opportunities.
The increasing costs are not just a local issue; across Europe, the average cost of a funeral equates to about two months’ salary. In Hungary, however, this cost is relatively lower, though still a considerable financial challenge for many families. The trend towards simpler, less formal ceremonies is growing, with many families opting for fewer supplementary services and smaller gatherings to cut costs.
To address these challenges, Palkovics and Novák both urge families to plan ahead, either through insurance or savings, to manage the financial impact of funeral expenses. As the economic situation remains uncertain, with ongoing inflation and other pressures, the cost of funerals is unlikely to decrease in the near future.
Don’t Take It Home!
Gergely Novák also mentioned a concerning trend: more people are choosing to take urns home without holding any ceremony, a practice funeral professionals discourage. To combat this, a campaign titled “Don’t Take It Home!” was launched last year, aiming to raise awareness of the emotional and social implications of such decisions.
Finally, Novák’s company has introduced a pioneering online service, SimpleTemetés.hu, offering a fully online funeral arrangement process. This innovative service is designed to assist those managing funerals from abroad or who prefer to handle arrangements in the comfort of their own home. The platform provides comprehensive information on available services and allows users to customise their plans while ensuring secure payments and 24/7 customer support.
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