Pensioners are in a difficult situation at the cash register

By: Trademagazin Date: 2024. 08. 14. 12:10

According to the latest data from the Central Statistical Office (KSH), inflation continued to accelerate in July, rising to 4.1 percent on an annual basis. This value is higher than June’s 3.7 percent and represents the highest inflation figure of this year so far, which even exceeds May’s 4.0 percent. The consumer price index mostly stayed below 4 percent in the first half of the year, but the July figure indicates that inflationary pressure is intensifying. Of particular concern is the increase in the food price index, which jumped from 1.1 percent in June to 2.7 percent. This data is also one of the highest values of this year, which is preceded only by the 3.6 percent increase in January – Pénzcentrum points out the anomaly.

Inflation data can cause difficulties for pensioners in particular, as the purchasing power of pensions has decreased due to rising prices. Based on KSH data, an average pensioner would have been able to buy less food in July than a month earlier. In the case of seven of the ten basic foods examined, the quantity that can be purchased has decreased, which indicates that inflation has its effect most on everyday food consumption.

For example, the average price of a bun remained HUF 66 in July, but this is one of the few products whose quantity that can be purchased has not decreased. An average pensioner could have bought 3,519 buns in June, and slightly more, 3,525 in July. On the other hand, the price of eggs rose from HUF 70 to HUF 73, due to which the quantity available for purchase decreased from 3,318 to 3,187. The situation is similar in the case of 2.8 percent pasteurized milk, the price of which increased from HUF 432 to HUF 437, so the quantity available for purchase fell from 538 liters to 532 liters.

The biggest price increases were observed for flour and granulated sugar. The price of a kilo of flour was HUF 178 in June, but in July it rose to HUF 261, which means a 46.6 percent increase in price. As a result, the quantity available for purchase decreased from 1,305 kilos to only 891 kilos. The price of granulated sugar also rose significantly, from HUF 348 to HUF 411, which represents an increase of 18.1 percent. The quantity that can be purchased fell from 667 kilos to 566 kilos. In addition, the price of pork leg also rose significantly, from HUF 1,870 to HUF 1,980, so the quantity available for purchase decreased from 124 kilos to 117 kilos.