Hungary came on top of the EU again. This time in the official headline inflation year-on-year. And 4.7% still seems overly optimistic to anyone with half a brain.
Eurostat published the annual inflation rates of the EU-28 and Hungary leads the pack with 4.7% annual inflation in 2019. And that is just what slipped through all the massaging of data on every possible level.
Food, for instance, has become 8.3% dearer during the same time. Not only do you spend more of your income on food the poorer you are – the number doesn’t seem to add up when you break them down even further. Given that the individual food groups fared like this, one has to wonder what pulled down the data to just 8%.
+7.3% on pastries and milk
+14% on meat
+21.9% on fruits and vegetables
(The interviewees in the video talk about much more than 8% in price increase, and the video also mentions the official average price of a two course meal in a restaurant less than 4 euros according to the statistical office – which made me laugh through tears.)
The statistical office also claims that we spend less than 20% of our income on housing (LOL) and utilities and 25% on food. Any idea what we spend a glorious 55% of our income then?
Luckily (for the incompetent central bankers of the world) Zara sells its slave-made frocks for the same price and consumer electronics are getting cheaper (to no merit of any politician, despite their best efforts, actually – even though they clamor to take credit for it).
And this trend didn’t start this year. No doubt all governments are trying to impact their economic numbers and the methodology of such statistics is part of the lie. This way governments can gaslight us and tell us that whatever we experience is our personal, individual issue (individual failure no less) and not significant on the economy level. (They didn’t have statistics to lie to us with in the 1930s.)
This is how a 400% increase in the price of potatoes is drowned in statistics until only 20% is admitted, and this is probably how the above mentioned 4.7% data was made. They (not just the Hungarian government) excluded housing costs – or added it in such a limited and bleached-out way as to be irrelevant to the living costs of actual people.
The Hungarians, in particular, have been piggybacking on Orbán’s infamous utility-war, when in the election year of 2014 his majesty ordered the utility companies to cut prices by 10+10% – sending the official inflation data into a tailspin. We are still paying way above the market price for utilities, but it is very difficult to explain to someone who reads it on her bill every month that her generous protector, Orbán, has saved this much to her this month, this much this year, this much since the start of the utility war.
There is also leeway to reduce the world record 27% VAT on items that can drag down the price of the inflation baskets.
And everyone can tell horror stories about the detached-from-reality consumer baskets statistical offices calculate with, masking bias behind ostensible incompetence and methodological inertia.
Meanwhile the central bank is leading a hugely inflationary policy – and gloating from time to time how unorthodox and counterintuitively successful they are. It took until 2020 for the problem to sink in. The forint is at an all-time low against the euro, sinking over 7% during 2019. The price of actual food and housing is through the roof, even the grocery store clerk warns you before he fills your request that the price of your order has increased a lot recently, do you still want it?
But in October 2019 one of the central bank top dogs had confidently declared inflation dead. The alarming thought is that they really do believe their own words, that they really believe that running amok for the last years was really without consequences.
Naturally, they fit neatly in the global trend where money printing to save institutional debtors (but not individual ones) – cutely called quantitative easing, rather than what it is – is finally becoming undeniably inflationary. And only the small fry will suffer.
Our central bankers are only worse because they are known to be drunk on their own imagined success, openly follow esoteric nonsense, and spend more time on geopolitical and futurism research than perusing actual numbers. Even the ones they made up.