Can the strengthening of the forint be good for food prices?
The forint is strengthening, it has not been in this form compared to the euro since May 2022. But will this affect food prices? Especially when the price caps will disappear?
Among the internal factors affecting inflation, it is important to highlight, according to the MNB’s information, the declining retail turnover, which can modify the determination of prices, thereby curbing price increase efforts, writes Szigethy-Ambrus Nikoletta, international relations analyst at the Oeconomus Economic Research Foundation, in response to the Index’s question.
There are several changes in the food market, primarily the development of grain prices may bring relief in the entire sector in the spring, as the export price decreased in December due to the favorable harvest situation in the southern hemisphere. The current strengthening of the exchange rate and the perceptible drop in world market prices for some products cannot yet affect consumer prices on the Hungarian market, the difference is expected to stabilize in the spring months at the earliest.
The reason for this is the strengthening of the disinflationary effects, which is partly due to the already detailed changes in the grain market. The Minister of Economic Development, Márton Nagy, also reported in an interview that, according to their expectations, food prices will peak in February-March, and may drop drastically from there.
Related news
The forint strengthened to a winter record high last Wednesday
The forint strengthened to a winter record high last Wednesday…
Read more >The Croatian government would expand the price cap on another commodity
The Croatian government will extend the price cap to more…
Read more >MBH Investment Bank currency analysis: the forint may strengthen in the short term
According to the latest analysis of the MBH Investment Bank,…
Read more >Related news
OKSZ: margin is not profit!
The international food retailer member companies of the National Trade…
Read more >Viktor Orbán on Kossuth Radio: traders cannot add more than 10 percent to the purchase price
Traders cannot add more than 10 percent to the purchase…
Read more >GKI Analysis: Why are food prices constantly rising?
In recent times, the rise in the prices of basic…
Read more >