Food prices in Hungary will increase significantly in autumn

Even though Hungary struggles with the immense amount of water brought by Cyclone Boris from the Mediterranean, this summer was extremely dry and the drought reduced yields in Hungary. As a result, experts warn of a significant food price rise from October.

According to Blikk, a Hungarian tabloid, flour prices increased considerably in September, just like in the case of bakery products. In August, the vegetable price increase reached 7% on average. In the case of tomato, the figure was 58% more than in 2023. The price increase was significant concerning other products like cucumber (40%), and green pepper (37%). Consequently, people buy and put fewer vegetables in their food. A woman told RTL Klub that she no longer buys cauliflower because she does not have enough money for a big one and sellers no longer halve it.

The official figure of inflation in Hungary has been decreasing in the last few months. For example, in August, the Central Statistical Office talked about a 3.7% average price rise. Of course, that is only the average and the Hungarian authorities use a special method of calculation including even rarely bought products (like property or vehicles). That may be misleading since people spend most of their monthly income on food, rent, and everyday services and the price rise in those segments is considerably higher than in the case of flats.

According to hvg.hu, inflation in Hungary is still the fourth highest in the EU. In October, it will be at 4% again. The EU’s average is 2.4%, the eurozone’s is 2.2%. Based on the latest data, Romania’s inflation was the highest, 5.3%, followed by Belgium (4.3%), and Poland (4%).

Digital Products Dairy products will cost more

György Raskó, a Hungarian agriculture economist, said consumers are to pay more for vegetables because the yield is lower due to the extremely warm and dry summer. Furthermore, people should expect price rises in the dairy sector. Milk prices will grow due to the hot summer because the amount of milk produced is 5-10-15% lower, just like its fat content.

In the European Union, butter prices are 66% higher compared to 2023. Thankfully, in Hungary, it stagnates. People should only expect a price rise in the dairy sector, including cheese, sour cream and cream.

The hot weather decimated Hungary’s fish stock as well. However, based on RTL Klub’s information, the price rise concerning fish will be moderate in the next few weeks. A spokesman of the Milk Production Council, Ferenc Lévai, said they would very much like to keep their 2023 prices plus a couple of percent.

According to RTL Klub, food prices doubled in Hungary between 2017 and 2023. Meanwhile, in the European Union, the price rise was only 40%.

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