József Halász, leader of CentralTrade claims that “Our partners importing from Slovakia, Poland and Germany have informed us that soon they will not be able to keep their prices due to warehouse shortages.” Origo alleged that they have heard the same news from importers.

Although price increase might be good for Hungarian producers, imported products are still cheaper at 314 HUF / 1 EUR price than Hungarian products. As a result, small shops can still choose their imported products and make their customers pay for the higher prices.

Origo has surveyed retailers to find how great ignorance is among them in connection with exchange rates. They know about the weakening of Forint but they do not know what prognosis to make based on this change. Wholesalers state that they have not informed retailers yet about the possible changes and they do not intend to do so “When we will really be in need of making the products more expensive our retailers will realise that when they order the products.”

Smaller shops are not affected as they sell a majority of Hungarian products. Hypermarkets are also likely to endure. Auchan representative claimed that for short periods they can keep their prices but let a longer period of Forint weakness come they might have to raise prices too. Forint is now given one week to get better until market chains will have to go more expensive.

Source: ORIGO

Words by Christian Keszthelyi for XpatLoop.com