This is the price increase to be expected after the abolition of official prices in Hungary

Csaba Héjja, senior analyst at MKB Bank and Takarékbank, gave an interview to Inforádió. The expert said that the phasing out of the official prices will add 3-5 percent to food inflation.

There are several reasons why Hungarian food inflation was the highest in Europe in December 2022, a senior analyst at MKB Bank and Takarékbank told InfoRadio. Csaba Héjja added that a small price increase should still be expected in the first quarter. According to him, the phasing out of the price caps will throw 3-5 percent on food inflation.

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Csaba Héjja also said that the Hungarian food industry has brought forward one or two quarters of price increases. The price increases for the first three months of 2023 were already implemented at the end of last year. This is why Hungarian food inflation peaked at 44.8 percent at the end of the year, he said.

According to the analyst, food prices could also peak in March, when the price ceiling in the sector will be reached.