Beáta Olga Felkai: the population has turned to cheaper food, but this will change

By: Trademagazin Date: 2024. 05. 10. 12:40

Beáta Olga Felkai, the Deputy Secretary of State at the Ministry of Agriculture, highlighted the substantial changes in consumer habits due to high inflation. In 2022 and 2023, many Hungarians were forced to buy cheaper food items and abandon brand loyalty due to rising prices.

In 2021, there was a positive trend with Hungarians spending 41.2% more on food than in the previous year, despite a 4.1% food inflation rate. However, 2022 saw a drastic turn with a 1.6% decrease in purchase volume and a significant 26% inflation, leading to a 6.8% drop in real spending. The decline continued into 2023, with a further 4.6% decrease in volume and an 11.4% fall in real-value turnover.

The Deputy Secretary stated that from the beginning of 2024, an increase in consumption volume is expected from these very low levels. The key question remains whether consumers will return to purchasing branded and higher-value products after shifting away from them over the past two years. The future of inflation trends, which are expected to rise slightly again in April, will also play a critical role in shaping consumer behavior.