In Hungary, basic food items have become the most expensive in Europe: this may be the reason

By: Trademagazin Date: 2022. 11. 07. 17:15

There is no question that inflation is the highest in Hungary, due to the drastic increase in food and energy prices – Dóra Erdélyi, senior analyst of the Oeconomus Economic Research Foundation, pointed out in an interview with InfoRádio.

Weak forint is a major reason

“In Hungary, food prices are rising at a higher rate than elsewhere in Europe. On average, in the European Union, food prices rose by 15.8 percent in September, this was 39 percent in Hungary. This is mainly due to the extraordinary drought situation and the significant weakening of the forint exchange rate.”

– says the specialist according to Infostart.

“To understand the situation, it is important to highlight the labor market situation. If the labor market is tight, the number of vacant positions is high and unemployment is low, it is more difficult for employers to find new workers. This leads to an increase in wages, and in the Baltic countries, earnings have been showing an increase of around ten percent for several years, the Hungarian one is much higher: around 15 percent”

she added.