Surprising price drop in the Hungarian pensioners’ price basket

By: Trademagazin Date: 2024. 05. 09. 12:26

According to the May data of the Mfor Pensioners’ Price Basket survey, there was a surprising 2.5% decrease compared to April, translating to a savings of 701 forints. This trend indicates that the Mfor Pensioners’ Price Basket Index value remains in a significant deficit, contrary to expectations that the index would move towards zero. This significant price drop is particularly noteworthy since the price basket value had been stable between 27,000 and 28,000 forints, and such a monthly decrease was last recorded in August 2023.

Among the products typically purchased by pensioners, sugar and luncheon meat showed significant price reductions, with more than 16% drops within a month. On the other hand, there was a significant increase in the price of iced tea, exceeding 29%. On an annual basis, eggs, flour, potatoes, cheese, and milk showed significant decreases of more than 27% in prices.

Comparing with the rate of pension increases, the value of pensions increased by 9.3% over the past year, while the price basket decreased by 8.8%, resulting in a short-term real value increase of 18.1%. Over a longer period, examining data from the past four years, the pension increase, even without the thirteenth month’s payments, was 51.1%, which is also favorable for pensioners. Comparing such price decreases with pension increases is crucial for ensuring the livelihood of pensioners.