Out-of-Control Prices Expected in the Election Year

Inflation hit a 14-year high at the end of last year and the government is embarking on a massive cash giveaway ahead of the election. And the result is in: the majority of Hungarians expect retail prices to go out of control in 2022, according to a representative survey by Pulzus Research.

Last November, consumer prices rose by 7.4%, a figure not seen for 14 years, including a rise in fuel prices, but with food prices for everyone also up by 6%. Within this, edible oil rose by 26.9%, flour by 20.2%, margarine by 19.5%, bread by 12.1% and pastries by 11.3%.

Perceptible inflation seems to have made people pessimistic about expectations for 2022, which is not helped by the huge amount of money the government poured, and is pouring, into pensioners and family workers before the elections, not to mention the almost 20% increase in the minimum wage and the guaranteed minimum wage. Meanwhile, the Hungarian currecy, the forint is also persistently weak. All this suggests that price rises will not slow down this year.