Food prices in Hungarian shops are 34 percent higher than last year. However, this is nowhere near the end. Experts say that in a little while, not only food prices but the price of other essential products will skyrocket. Some Hungarian butchers will also struggle with meat shortages in the upcoming months.
There are some Budapest farmers’ markets that are not raising prices for the time being. According to the sellers, customers would not be able to bear further price increases. However, this means a big risk from their aspect. Some small producers say they had not raised their prices as much as they should have done, which would probably lead to their closure. By way of example, a small farmer now sells a kilo of cheese for EUR 9 (~ HUF 3,500), which he estimates he would have to sell for EUR 25 (~HUF 10,000) to avoid making a loss. He also has to cover the costs of the more expensive feed for his animals. But as he says, this could not be passed on to the customers.
According to the Hungarian news portal G7, on average, people are paying 34 percent more for food now than this time last year.
Based on their measurements, the prices of bakeries have risen by 120 percent, the price of semi-brown bread by 107 percent, and the cost of spaghetti pasta has more than doubled. Trappist cheese has risen by 92 percent, salt by 69 percent, eggs and sour cream have also crossed the 50 percent mark, while flour has gone up by 25 percent.
At the same time, there are certain fruits and vegetables, including carrots, turnips, apples and onions, which are cheaper now than a year ago.
This is not the case for meat. Many Hungarian butchers planning price increases in September, and they also see meat shortages as a possibility – reported by atv.
Unfortunately, not only the prices of basic foodstuffs are skyrocketing. As the Hungarian news portal Telex reports, there will also be a significant rise in prices in confectioneries. As a result, a slice of cake can exceed EUR 2,50 (~HUF 1000) soon. Even the price of everyone’s favourite summer treat, ice cream, is expected to rise remarkably. Currently, the price of a scoop of ice cream is between EUR 1-1,20 (~HUF 350-450). According to the president of the Hungarian Confectioners’ Association, from a business perspective, pastry cakes should be sold at the Vienna prices of 4-5 EUR, but only a few places in Hungary can sell quality, premium products for that price.
Hungarian restaurants increased the prices of their products by an average of 18 percent. Even though they would have had to increase their prices by 30-50 percent in real terms due to rising costs, this would have had a discouraging effect on customers. One in ten restaurants in Budapest has already closed down and this trend could continue.
Skyrocketing prices and stagnating wages
Unfortunately, wages are not rising as fast as prices. This could lead to a significant proportion of the population facing difficulties in making ends meet. Additionally, the increase in energy prices is soon to come as well. According to the expert, as a result of the end of overheads reduction, 20-50 percent of the proportion of households will be affected by the increasing energy prices.
Read alsoHungary is about to face brutal inflation
Source: atv.hu, g7.hu, telex.hu
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