Hungary: Bread has risen again, where will it end?

Published 2021년 10월 27일

Tridge summary

The article highlights the significant rise in wheat prices in Hungary, leading to increased costs for bakers and potentially affecting the price of bread. The rise is due to multiple flour price increases and expectations of further hikes. The government is taking steps to ensure domestic feed is used for livestock to meet their needs. The baking industry is experiencing increased costs due to rising logistics and wages, as well as the impact of the forint's weakening against the euro. Factors such as the high cost of diesel, energy price increases, and company-specific pricing contribute to the escalating costs. The industry's labor-intensive nature and the preference of the younger generation to avoid night and weekend shifts present additional challenges.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Due to the constantly rising wheat prices, the press has been guessing since the summer when the price of bread will cross the new, symbolic limit of four hundred forints. According to the consumer average price table related to the latest inflation report of the Central Statistical Office in September, we have just avoided this despite the slow but persistent rise throughout the year: the average kilo of white bread was 374 forints in January and 399 forints in stores in September. Since then, we have probably gone beyond this, considering that the effect of the latest flour increase was probably reflected in the prices of bakers in October. In the long run, however, bakers may be forced to raise again. So far this year, there have been three significant flour increases, one of which has been validated by the mills after harvest. As a result, the price of flour has risen by about 25-30 percent, but the price increase is not expected to stop here, considering that the forecasts ...

Source: AgroTrend