Agricultural production costs increased by 40% in the first half of 2022. The price increase was 44% in the case of plant products, while 31% concerns animal products, the Hungarian Central Statistical Office said yesterday. (KSH) on its website. Meanwhile, the growth of input prices in the agricultural sector was even higher, 41%. Moreover, real estate prices also continue to rise not only in Budapest but also in other cities.
Sudden rise in prices in Hungary
KSH claims that several factors have caused the drastic rise in prices in the agricultural sector. First, the COVID-19 pandemic has affected all supply chains, and problems have remained even in the post-coronavirus period. Additionally, energy prices began to soar. According to World Bank calculations, energy prices have risen by 82% in just one year. Fertilizers are also much more expensive (85%), 168.hu wrote.
To make matters worse, Russia’s war in Ukraine has led to uncertainty in the agricultural sector. Moreover, the weather was not optimal in Hungary either. In the spring, frost destroyed the yield of strawberries and cherries. In summer, the drought aggravated the situation.
No one should expect a change in trend
The price of grains and oilseeds increased by 61% and 59% in Hungary. Fruit prices fell by 7.4% thanks to European deliveries. However, the costs of cherries, potatoes and vegetables increased by 21% and 20%. The price of live animals has increased by 34%. For example, the cost of chicken has increased by 42% because of the bird flu epidemic.
In the case of pork, the increase was 28%. No one should expect a drop because the price of fodder has also increased by 39%. Phytosanitary products are also more expensive (17%), while energy costs have increased by 36%, including fuel prices (26%).
Real estate prices have also increased
We have become accustomed to the fact that real estate prices are constantly rising in the Hungarian capital. However, this is also the case in other major cities in Hungary. According to the latest survey by Otthon Centrum, the average price per square meter of newly built apartments has reached 862,000 HUF (2,173 EUR). It’s a record. The increase is 24.2% compared to Q3 2021 figures, Piac és Profit wrote.
Two Hungarian rural towns broke the record of 1 million HUF/m2: Sopron in 2021 and Debrecen this year. New apartments cost 1.1 million HUF (2,773 EUR) per m2 in the first and 1.05 million HUF (2,647 EUR) per m2 in the second. The cheapest Hungarian rural town in this regard is Hódmezővásárhely: 63,000 HUF per m2 (1,419 EUR).
Source: 168 óra, Piac és Profit