The chemical industry can also have something to do with the development of food prices
According to the analysis of the Egyensúly Institute, the chemical industry does not at first appear to be an extremely important sector in Hungary, since it produced barely 1.5 percent of the gross added value last year. However, it is the sixth largest supplier to the agriculture and food industry, mostly due to the fertilizers and chemicals used in crop production. If there is an increase in producer prices in the chemical industry, it quickly spills over into agriculture and can be reflected in food prices over time.
The chemical industry is the industry most exposed to natural gas prices, as many of its products are based on natural gas, such as ammonia, which is widely used in agriculture, and the pétisos made from it. Due to the high price of gas, it has been less profitable for industrial companies to produce recently. According to KSH data, for example, in August this year, they reached only 10 percent of their production volume of a year earlier, while the price of their products rose significantly, Haszon.hu points out.
However, they add that the sector has barely reduced its workforce. Furthermore, it is likely that, despite the intermittent production, they will close a good year, which indicates that the recording market is receptive to prices – writes Portfolio, referring to the analysis.
Related news
Annual inflation slowed in the euro area and the EU in May
Annual inflation slowed in both the eurozone and the European…
Read more >K&H: Hungarian economy could grow by 2.5-3 percent next year
Based on the current, uncertain outlook, after the 0.5 percent…
Read more >Consumer price growth in Spain slowed to a seven-month low in May
In Spain, annual consumer price inflation fell to 2.0 percent…
Read more >Related news
Promotions, prices, alternatives – promotions and Hungarian households
Tünde Turcsán, managing director of YouGov spoke about how Hungarian…
Read more >The “Pass it Back, Brother!” spring 2025 campaign has ended successfully!
This year marks the seventh year of the ‘Pass Back,…
Read more >K&H: investors will receive a missing compass
The K&H Securities – Investor Sentiment Index has been launched,…
Read more >