The weakening of the forint has led to a drastic increase in prices in the Hungarian car market

The weakening of the Hungarian forint (HUF) has led to unprecedented price increases in the Hungarian car market, even by European standards, while chip shortages slow down global supply.

This article originally appeared on our sister site, Ungarn Heute.

Last year, the average price of new cars in the European Union increased by 3.5%, while prices in Hungary increased by 9.2%, according to Eurostat data. This not only made Hungary the favorite in this area, but also put it well ahead of second-place Germany, where inflation in the new car market was only 4 .6%, reports Napi.hu.

Things weren’t much better in 2020, when the Hungarian market became 8.8% more expensive, compared to 1.7% for the EU. In 2019, Hungary ranked second at 4.4%, with Portugal the only country further behind at 4.7%, while the 27 EU member states recorded an inflation rate of 1.9% .

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Why does the Hungarian forint exchange rate keep falling?

Why does the Hungarian forint exchange rate keep falling?

Considering the radical change in Hungary’s monetary policy over the past few decades, the weakening seems rather unsurprising.Continue Reading

Car prices are of course higher than the average inflation rate not only in Hungary, but also in other European countries, as the sector has been facing supply problems for a long time. This can be attributed to the shortage of semiconductors, but logistics has also been affected by the coronavirus crisis. So, nowadays, not only do you have to pay a lot for a new car, but you also have to wait a long time.

featured image illustration via Csaba Krizsán/MTI

Laura T. Thrasher