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Shortage of Flour May Increase Bread Prices in Hungary

Hungary Today 2021.11.15.

A double-digit increase in bread prices is expected early next year, as mills will increase their sale prices by 40 percent. On the Hungarian market, wheat has become a scarce commodity.

This article was originally published on our sister-site, Ungarn Heute.

After the calm of the past 7-8 years, in recent weeks the prices of corn and wheat on the stock market have risen dramatically. Instead of the former 40-50,000 forints, one has to pay over 90,000 forints for a ton, said Dávid Hollósi, analyst of Takarékbank to news portal inforadio.hu.

On the Hungarian market, wheat has become a scarce commodity, it is hardly available. Besides the energy crisis, the economic changes triggered by the coronavirus pandemic are to blame.

Hungary Inflation 6.5% in October
Hungary Inflation 6.5% in October

Inflation is at the highest level in years and well outside of the 2-4 percent tolerance band of the National Bank of Hungary.Continue reading

According to Hollósi, another problem is that the modern food economy has never before faced such a situation, where all the components of the price, such as energy, labor, oil, and material prices, have increased so drastically at the same time.

However, according to the expert, a price increase to the extent of 40 percent which the mills have implemented is not realistic for consumers. One can rather expect a 10-15 percent increase in the price of bread at the beginning of next year, but this may be influenced by several factors until spring.

Featured photo via Pixabay


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