Tough choices for Hungary families as cost of living skyrockets

Soaring food prices are forcing families across Hungary to make tough choices. The government has introduced price controls to ease the burden, but critics say they may do more harm than good.

Victoria Dajka, a mother of three who works as a copywriter, feels the impact every time she shops: Her grocery bill has nearly doubled in two years.

"It has not been easy to support three children on my own. But this year, it's been harder," she said. "Food prices have skyrocketed. I have to count every single cent to make it to the end of the month."

Dajka and one of her children have thyroid conditions, requiring a strict gluten- and dairy-free diet. This makes shopping even more challenging.

"I'm not exaggerating, right now I spend over $2,500 in groceries every month. Two years ago, I spent about $1,600," she said.

Highest inflation in EU

Hungary has the highest year-on-year inflation rate in the European Union at 5.7 percent. Over the past five years, food prices have jumped 80 percent, according to economists.

To address the crisis, the government has reinstated price caps on 30 essential items. Retailers can only add a 10 percent markup. Officials say this protects consumers, but some experts warn it could create shortages.

"The food price increased by 7 percent in the last 12 months; other services, 9 percent in a year," economist Bod Peter Akos said. "Middle-class people who have to finance a car, to buy a new computer or pay for the postal services, the telephone and bank accounts, are struggling as things have become more expensive."

The price caps put pressure on small businesses, which already face rising costs.

"The particular problem is that in the last two years, there has been no growth in Hungary, and this year the growth rate is very modest," Akos said. "So the problem is relatively high inflation and no growth. This makes the ongoing situation even worse."

At markets and supermarkets, many Hungarians check prices carefully, comparing discounts and adjusting their spending. But for families like Dajka's, cutting back is not an option.

She continues to stretch every forint to provide for her children. As food prices rise, many Hungarian families wonder how much longer they can afford to keep up.