According to analysts, the price of food will already drop by the summer

By: Trademagazin Date: 2023. 04. 17. 18:40

According to Csaba Héjja, senior analyst from MKB Bank and Takarékbank, the peak of agricultural producer prices is expected to occur in the summer, while for animal products, the peak may be delayed until January of this year. The expected turnaround in food inflation is expected to happen in the summer, leading to a decrease in prices, according to an Infostart article.

In recent times, agricultural procurement prices have shown significant growth, which could have an impact on the coming months. According to data from the Central Statistical Office, these prices were 27% higher in February compared to the same period the previous year, but the rate of increase has already slowed compared to the previous month. Agricultural prices peaked in September 2022 due to supply security risks caused by the war in Ukraine.

One of the factors influencing prices is the strengthening of the Hungarian forint, which reduces prices. Additionally, a decrease in prices is expected on the international grain exchanges, as more grain supply is expected due to an increase in American and Russian wheat exports this year. Fear of a recession may also affect prices as consumer purchasing power may decrease.

According to analysts, no price decrease is expected for potatoes due to a limited supply, while for vegetables, higher prices are just beginning to be reflected due to the increase in energy and fertilizer costs. In the case of animal products, prices may decrease as cheaper grains are used for animal feed.