Will Hungarian stores soon be hit by further price hikes and meat shortages?
Food prices in Hungarian stores are 34% higher than last year. However, it is not near the end. Experts say that in a short time, not only food prices but also the prices of other essentials will skyrocket. Some Hungarian butchers will also be struggling with meat shortages in the coming months.
Some farmers’ markets in Budapest are not raising their prices at this time. According to sellers, customers could not bear further price increases. However, this means a big risk of their appearance. Some small producers say they have not raised their prices as much as they should have, which would likely lead to their closure. For example, a small farmer today sells a kilo of cheese for EUR 9 (~3,500 HUF), which he estimates he must sell for EUR 25 (~10,000 HUF) in order not to make a loss. He also has to cover the cost of more expensive feed for his animals. But as he says, this could not be passed on to customers.
According to the Hungarian news portal G7, on average, people are paying 34% more for food today than at the same time last year.
According to their measurements, bakery prices increased by 120%, the price of semi-brown bread by 107% and the cost of spaghetti pasta more than doubled. Trappist cheese increased by 92%, salt by 69%, eggs and sour cream also crossed the 50% mark, while flour increased by 25%.
At the same time, some fruits and vegetables, including carrots, turnips, apples and onions, are cheaper today than a year ago.
This is not the case for meat. Many Hungarian butchers are planning price increases in September, and they also see meat shortages as a possibility – reported by mtb.
Unfortunately, it’s not just the prices of basic foodstuffs that are skyrocketing. As a Hungarian news portal Telex reports, there will also be a significant increase in confectionery prices. As a result, a piece of cake can soon exceed 2.50 EUR (~1000 HUF). Even the price of everyone’s favorite summer treat, ice cream, is set to rise significantly. Currently, the price of a scoop of ice cream is between 1 and 1.20 EUR (~350-450 HUF). According to the President of the Hungarian Pastry Association, from a business point of view, pastry cakes should be sold at the Vienna price of 4-5 EUR, but only a few places in Hungary can sell high-end products from quality at this price.
Hungarian restaurants have increased the prices of their products by an average of 18%. Even though they should have increased their prices by 30-50% in real terms due to rising costs, it would have had a discouraging effect on customers. One in ten restaurants in Budapest has already closed and this trend may continue.
Soaring prices and stagnating wages
Unfortunately, wages are not rising as fast as prices. This could cause a significant proportion of the population to struggle to make ends meet. Moreover, the increase in energy prices is also imminent. According to the expert, as a result of the end of the reduction in general costs, 20-50% of the proportion of households will be affected by the increase in energy prices.
Source: atv.hu, g7.hu, telex.hu