In the past two years, the price of most basic food items has at least doubled in Hungary

By: Trademagazin Date: 2023. 04. 14. 14:03

The inflation rate in Hungary remained higher than expected in March, according to data from the Central Statistical Office (KSH). Despite the decline in the prices of some basic foods, the rate of increase in consumer prices was 25.2%, only slightly down from the 25.4% increase in February.

Although the prices of many food products, including ham, cheese, butter, and pasta, decreased in March, most of them had significantly increased in the previous period. Even with the correction in prices, the weight of food products in the consumer basket continues to drive inflation upward. In addition, the prices of other products and services, such as sweets, soft drinks, TV and internet services, and beer, have also increased.

Over the past two years, the prices of most basic foods in Hungary have at least doubled. Bread, for example, costs more than two and a half times as much as it did in March 2021. Despite the decrease in prices, the cost of trappist cheese, fat, butter, and spaghetti has more than doubled. Although several external factors are favorable, such as the estimated cost of natural gas, which decreased in March, the high inflation rate is a cause for concern.

The Hungarian government has attempted to alleviate the situation by instituting various measures, including a reduction in the tax on basic foods and the capping of energy prices, but the inflation rate remains a challenge. While inflation in Hungary has been at historic highs, there is hope that it will gradually decrease with the government’s policies and the improvement of the economic situation.