Hungarians believe that a devalued forint, high energy prices and flawed economic policies are responsible for Europe’s champion food inflation.

More than three-quarters of Hungarian shoppers have encountered a situation where they could not buy food products in stores at limited prices due to their absence: 56% of them regularly encounter this phenomenon, and in the case of 22%, something like this happened to them. data from a public opinion poll conducted by Publicus Research in mid-December on behalf of the Hungarian newspaper Népszava, Rador cites.

Women, who are expected to shop more often, are more likely than men to experience shortages due to price restrictions: 62% of women and only 49% of men said they could not regularly buy products at restricted prices.

All this is not without interest, because when the fuel price restriction was lifted on December 6, the chief of staff of the Prime Minister of Hungary, Gergely Gulyas, said that any price restriction makes sense if it does not lead to a shortage of goods. If the shortage reaches such an extent that the product cannot be provided by families, then the price ceiling loses its meaning.

However, despite the fact that almost from the moment of the introduction of the limit prices, stores limit the number of products that can be purchased only once at this price, since the beginning of summer, information regularly appears on social networks, reporting that sugar is not found in stores and vegetable oil, rare UHT milk 2.8% fat.

However, it appears that this level of output shortage has not yet exceeded the government’s stimulus threshold. The food price freeze, introduced from February 1 this year, has been extended until mid-November – except for sugar, sunflower oil, wheat flour BL 55, chicken breast and legs, pork leg and ultra-pasteurized milk 2.8% fat – both in eggs and and potatoes. And in mid-December, the event was extended until April 30 of the following year.

What is the reason for the rapid increase in food prices

For some reason, – notes Nepsava, – voters of ruling parties rarely face problems caused by price restrictions. According to the Publicus opinion poll, at least 63% of the opposition and 67% of undecided voters are systematically unable to buy a product at the capped price, while only 41% of FIDESZ-KDNP (Christian People’s Party) voters face a similar situation. In general, 81% of voters of opposition parties, 84% were undecided and 69% of supporters of ruling parties faced a shortage of food products at limited prices.

Since the introduction of price capping, analysts and economists have been trying to draw attention to the fact that this measure will not affect the level of inflation, but will lead to a shortage of products. The reason for the shortage of products is that people are buying more than before at lower, artificially supported prices, and it is unprofitable for producers to sell their products on the domestic market. And inflation is caused by the price cap because, on the one hand, it causes disruptions in supply chains, and on the other hand, traders spread their losses from restricted products to other products. These price increases will not disappear even with the abolition of the price ceiling.

According to government propaganda, Nepsava notes, only Brussels and “wrong” sanctions are responsible for the increase in product prices. “Do you agree that sanctions will cause food prices to rise?” – this was, for example, the fake question that people had to answer during the national consultation launched by the Hungarian government, a question that immediately suggested the answer.

In the Publicus poll, respondents also cited other reasons they believe are responsible for soaring food prices, with sanctions ranking last. The survey found that people believe that food inflation is mainly caused by high energy prices (88%), a depreciated forint (86%), the government’s wrong economic policies (74%), and traders’ pricing methods. (63%) and sanctions imposed by Brussels against Russia (47%).

Of course, FIDESZ-KDNP voters are more lenient towards the government, says Nepsava: only 45% believe that the wrong economic policies are the cause of the rapid rise in food prices, 75% believe that currency depreciation has caused this situation, and 85% think obliged to sanctions from Brussels. Instead, 97% of opposition party voters blame the weak economy, 96% blame the wrong economic policy, and only 19% say the increase in food prices is due to sanctions.

A good part of the income is spent on food

According to the data of the Central Statistical Office (KSH), in November, the price of food products rose by an average of 44% compared to the same period last year, and according to the methodology of Eurostat, the price during this period increased by 49%.

According to Publicus research, in early December, people experienced an average price increase of 77%.

Less than a quarter of respondents estimated food inflation at the level corresponding to the KHS measurement, i.e. 41-50%.

Households spend an average of 39% of their income on food. Women believe this value is slightly higher, 43%, and men say it is slightly lower, 35%.

This means that the average monthly expenditure is HUF 101,000 per person, but the difference is quite large, as a fifth of respondents spend only HUF 26,000-50,000, while a quarter spend HUF 101-200,000 on food. Pensioners spend less on food, on average 81,000 forints, and working people – 111,000 forints.

Read also:

• Food prices have risen sharply in Hungary
• Hungary recorded the highest inflation in the European Union
• Populist measures taken by Viktor Orbán have a negative impact on the population: rationed food