The cost-of-living crisis is having a chilling effect in Hungary this holiday season. Charities have seen a fall in donations at the same time as demand is increasing due to the country's skyrocketing inflation.

Even during this season of giving, Hungarians have less to give. Rising food and energy prices have squeezed household budgets, and those who used to donate to charitable causes during the holidays are giving less or none at all, according to charities. 

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Inflation is the Grinch that stole Christmas, giving charities little to be cheerful about.

"We are going through a difficult time in Europe. But here in Hungary, it all just seems much harder," says Endre Zsolnai, shief organizer of the Santa Factory Charity. 

"High Inflation, fuel prices and the Ukraine conflict have affected how much people can give. This situation makes it hard to convince people about the importance of donating during this season."

Santa's Factory is Hungary's oldest Christmas charity. Every year at the start of December, it sets up shop in the heart of Budapest. Inside a giant inflatable dome, a team of volunteers from all over the world collects donations.  

"Every time someone brings us toys or anything, even the little things make me happy because it shows how much kindness there is in the city," says volunteer Barney.

Toys, non-perishable food and toiletries are sorted, boxed, and shipped across Hungary by Santa Factory volunteers. Each year they help between 5,000 and 7,000 families, but this year they say they may fall short of their goals.

Santa's Factory has been running for 18 years and its organizers say this is one of the most challenging. Donations are significantly down and more help is needed to spread some cheer this Christmas.

Despite the economic challenges, some people are still giving what little they can to those that have much less.

"We brought some toys, teddies and stuffed animals, and rollerskates," says Nikol, a Budapest resident who donated this year to the charity.

Although donations are low this year, organizers at Santa's Factory are doing all they can to help those in need and lift up their spirits.  

"Christmas is coming. We have Santa here with us," says Zsolnai. "We want to brighten their day, but we are well aware that for many families in need, this season could be mentally hard, so we try to give them hope to show them we care."

But as the need grows and Christmas nears, charities hope for a true miracle to meet their donation goals. This season, helping those in need during the most wonderful time of the year is harder than ever.