Hungarian food prices are the third highest in the EU? !

Hungary has the third highest price increase for unprocessed products in the European Union. According to Minister Márton Nagy, the extreme price spike can be attributed to the fact that “food products were cheaper a year ago”. Is food really cheaper abroad than in Hungary? Follow our article for more information.

Even the cost of preparing a plate of lecsó could exceed the average, as farmgate prices for peppers and tomatoes are expected to rise by 30-40%, said the president of the South-Alföld Gardeners’ Cooperative. Recently, a Hungarian customer living in Austria complained about the prices at the farmer’s market in Szeged. “Everything is much cheaper abroad. For example, a kilo of watermelons costs only 80 cents.

Despite the price freeze, food prices in Hungary continue to rise at an above-average rate, reports RTL. According to a recent Eurostat report, the rise in domestic prices for unprocessed products is the third highest in the European Union. Economist Márton Nagy said that a year ago shopping in Hungarian supermarkets was considerably cheaper than in many EU countries. The GKI Economics Research assumes that the record high forint and the increase in the minimum wage are the reasons for the soaring food prices in Hungary.

Hungary in food price crisis?

In Hungary last month, raw unprocessed foods such as fruit and vegetables already cost 19.5% more than a year earlier, according to recent Eurostat data. Portfolio.hu analyst István Madár said unprocessed foods were among the first items to experience a sharp price spike.

In this product category, Hungary recorded the third highest price increase last year, after Bulgaria and Estonia.

An economist’s perspective

Márton Nagy explained the unprecedented increase in prices by referring to the limited possibilities of internal transport. “Hungary does not have a port, which is an important factor when it comes to setting food prices.”

“This [food inflation] is not a direct result of the price cap, without the price cap food inflation would actually be even higher,” he said. He added that despite the price cap, the cost of food has risen faster in Hungary than in most EU member states. “Inflation is also down since you can’t have the same increase every year because of the base effect. We have to treat comparing these indices with caution,” he said.

Source: rtl.hu, gki.hu