Economic woes overshadow Hungary's Christmas markets

Amid surging energy prices and Europe's highest inflation rates, Hungary's festive season is tinged with economic gloom. The traditional Christmas markets, once a symbol of affordable holiday cheer, now reflect the nation's financial hardships.

"The electricity is three times more expensive than last year," Krisztina Kovács, owner of Kovács ceramics, told CGTN against the backdrop of her stall at a Budapest Christmas market. 

After over a decade of selling pottery here, Kovács faces a 20 percent price hike in her products due to soaring production costs.

Kovács notes the impact on customers: "It's okay for tourists, but not for Hungarians." 

The spike in market prices, driven by a 9.9 percent year-on-year inflation rate, has transformed once-affordable holiday treats into luxuries.

Inflation has become the Grinch at Budapest's Christmas markets. A hot dog now costs $15, and a cup of mulled wine adds another $5. The festive spirit comes at a steeper price this season.

Despite a drop from last year's near 26 percent inflation, Hungary is still reeling from a recession that has eroded savings. 

Peter Akos Bod, former Governor of the Hungarian National Bank, explained: "Last year we had a huge price shock. That's why this current single-digit inflation doesn't mean that prices are coming down, it only means that the speed of inflation is not as fast, but prices do remain high."

Violetta Hürecz, a fur vendor, appreciates the influx of foreign visitors. According to Hürecz: "After Covid, there were so many tourists, and you could feel they wanted to buy everything. Now it's not like that; they are buying lots of stuff but are more thoughtful about what they want."

The influx of tourists offers a lifeline to vendors like Hürecz. However, for many locals, the high prices at these markets symbolize the shift from Christmas joy to holiday hardships.

Subscribe to Storyboard: A weekly newsletter bringing you the best of CGTN every Friday