Many Hungarians Forced to Buy Less of Basic Foodstuffs

45% of Hungarians are already having to give up some of their basic foodstuffs and household items because of price rises. Women, pensioners and people with primary education feel the effects of inflation the most, according to a survey conducted by Pulzus Research for the business news site Napi.hu.

Inflation stood at 11.7% in June this year, and could rise further in the coming months. Core inflation and core inflation net of indirect taxes came in at 13.8%. In a particularly painful development for the population, food inflation rose by 23.7%, with both processed and unprocessed food price indices within the product group rising significantly. Compared to May, food prices increased by 2.8%, whereas in recent years food prices have been characterized by a moderation in prices in June.

Drastic interest rate hikes by the National Bank of Hungary (MNB) have not yet been able to curb the price increase. The government's price freeze measures are also only providing some relief, for example, they have not caused utility bills to fall, but with the exception of these, consumers are feeling the price increases in almost all areas of life. A recent survey by Pulzus Research confirms this, with almost all Hungarians having to tighten their belts because of the price rises.

Only one in seven Hungarians (14%) said that, price rises or not, they would continue to spend the same as before. The rest have had to give up at least part of their spending because of the rise in prices. 41% of the population are cutting back only on ‘luxury’ spending, foregoing entertainment, more expensive services such as beauticians, hairdressers, gyms and more expensive food in shops. But 45% have cut back even more, even on basic groceries and household items such as cleaning products and toiletries.