Csaba Héjja: the end of the price cap will affect food inflation for a while

By: Trademagazin Date: 2023. 02. 02. 12:29

Csaba Héjja, senior analyst at MKB Bank and Takarékbank, spoke to InfoRádio about why food inflation was the highest in Hungary and what to expect after the price cap is gone.

“The Hungarian food industry operates with relatively high leverage, i.e. there are many foreign, quasi-bank sources in these companies, and the suddenly increased working capital demand could only be met from the bank to a limited extent, so they had to create an even bigger cost increase for the next period by raising prices”

– said Héjja to the radio.

He sees that the Hungarian food industry has brought forward a price increase of one or two quarters. The price increases for the first three months of 2023 were already implemented at the end of last year, which is why Hungarian food inflation peaked at 44.8 percent at the end of the year.