Hungary, Europe's sick economy

In the small grocery store where he works in Budapest's ^6th district, Laszlo Jonasz can't stop talking. The 54-year-old cashes out customers one by one, while expounding on the ravages of inflation. "People are buying less and systematically comparing prices. Cinema and theater have become a luxury, and rents have skyrocketed," explains Mr. Jonasz, who now pays 280,000 forints (708 euros) for 65 square meters in the capital, including utilities.

An increase in line with figures from the Hungarian Central Statistical Office, according to which the price of renting an apartment in the country doubled between 2015 and 2025. For this father who works three jobs, there is no doubt: "Hungary is going backwards."

A few meters away, customers are also becoming scarcer between Rita Reitter's stalls: "Overripe vegetables are popular, but some prefer to go to Lidl, where the prices are unbeatable." In the Hungarian capital, where restaurant bills are approaching those of Parisian establishments, the general observation is: life is getting more and more expensive. Cumulative inflation since 2020 has reached 50%. After peaking at nearly 26% in the winter of 2023, it stood at 4.3% in July compared to July 2024, double the 2% recorded in the eurozone. Added to this is the volatility of the forint, the Hungarian currency, although it has stabilized in recent months and fallen below the symbolic threshold of 1 euro for 400 forints.

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