Rising costs hit processed meats and premium dairy as VAT relief remains absent
Retail prices for processed meat products and premium dairy are expected to surge as shops transfer higher purchase costs to consumers due to the absence of a VAT reduction.
Hungarian food retailers are warning that ongoing increases in wholesale prices are forcing them to raise shelf prices for processed meat items and premium dairy. Because these categories remain outside the reduced VAT bracket, the tax burden adds to the cost pressure. Experts note that feed price spikes caused by a summer drought and unpredictable energy costs have depleted reserves, limiting the ability to absorb higher expenses.
Consequently, prices for quality sliced meats and salami could climb noticeably within days, while cheese and butter face a double squeeze from costly imports and high domestic VAT. Analysts advise consumers to scrutinize promotional flyers and plan purchases carefully as the autumn season approaches, when a sharp price competition is expected to begin.
