Focus on dairy prices: The effects of price monitoring and market trends

By: Trademagazin Date: 2025. 02. 03. 11:59

The focus of the Government’s economic policy measures is on controlling the prices of basic foodstuffs, such as milk and dairy products. According to the Index’s analysis, retail chains are also cooperating towards this goal, which is also supported by the 60 price reductions registered over the past ten days. However, the increase in the prices of dairy products continues to put significant pressure on household budgets, the Index points out.

Importance of dairy products in consumption

According to data from the Central Statistical Office (KSH), dairy products are a decisive part of the shopping basket of Hungarian families. In the inflationary consumer basket, dairy products appear with a weight of 3.2%, while in the food basket they represent more than 10%. This weight shows that price changes in dairy products have a direct impact on consumer spending.

Based on the latest data, compared to January 2023:

The price of milk increased by 23%.

The price of butter and butter cream increased by 15.5%.

The price of sour cream increased by 14.5%.

The price of Trappist cheese is 12.2% higher.

The price of cottage cheese has become 9.8% more expensive.

Factors behind the price increase

The price increase is driven by both international and domestic factors. Increased feed prices and reduced milk yields due to drought have increased the price of raw milk on a global level. In addition, the increase in margins of domestic retail chains has also contributed to the increase in consumer prices.

The online price monitoring system established by the government in July 2023 provides an opportunity for price transparency and invigorating retail competition. The effectiveness of the system is proven by the fact that retail chains implemented 60 price reductions in 13 categories and 549 products over a 10-day period.