Several specialists justified the extreme increase in domestic food prices

By: Trademagazin Date: 2022. 11. 13. 21:09

The deterioration of the forint may be the most important reason, but of course food inflation, which is also prominent in the European context, is multifactorial.

Weak forint is the main reason

“Based on long-term trends, the Hungarian price of many products is adjusted to a foreign price, the price of Hungarian liquid milk or pork, for example, generally follows the German price. Due to the weak forint, however, the spillover effect has intensified here for these items. So if there is an increase in prices in Germany, then it will be the same here, but to an even greater extent”

– said Csaba Pesti, an employee of AKI.

The experts also agree that in the first half of the year, the strong domestic demand raised the prices.

“The volume index of food consumption rose by almost 10 percent in the first quarter, and people started stocking up on products with a price cap. However, the hoarding and spending was caused not only by artificial cheapening, but also by the fact that the government threw a lot of money at the population during the elections.”

György Raskó explained to Telex.