falling dollar and a loaf of bread

many friends of mine serve God in Europe…

one of my friends and I just had an email conversation about the effect of the falling dollar on their lives…

in their country (Hungary) the cost of energy has gone up 20% in the last year… the cost of food has gone up 17% in the past year…

the dollar has gone from 221 Forints in July of 06 to 172 Forints yesterday…

so

if a loaf of bread cost 200 Forints in 2006, that’s 91 cents…
then that same loaf cost 234 Forints in 2007…
at the new exchange rate its $1.36

so for these friends, his hypothetical loaf of bread went from $.91 to $1.36 in a year…

if I am calculating correctly, that is a net 49% cost increase combining their inflation and the falling dollar over the course of 16 months…

wow…

my sources – Hungary Economic data & USD – HUF

6 Comments

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6 responses to “falling dollar and a loaf of bread

  1. Laci and Keri Németh

    You want to hurt me???
    “hypothetical loaf of bread” ? Its not hypothetical… its reall…
    BTW. I was not the one he talked with I live in croatia… 🙂

    Which is more expencive then Hungary…

    But GOD WAS always faithful, and WILL be always faithull

    AMEN

    Laci

  2. Arden

    Also, I learned that prices increased across the european union over the past year by something like 4% but in HUNGARY, the prices increased by 13%!!! You can imagine the outrage of the Hungarian people at the large discrepancies. Hey, do a calculation on a blog for folks of petrol cost. Right now it is about 285 HUF/litre….

  3. Laci and Keri Németh

    good one arden
    L

  4. Anonymous

    That’s not neccessarily true. While the price of a loaf of bread and the price of energy is increasing in Hungary, that just means that it costs more, not that the dollar is losing value. Plus, even if the dollar is losing value, Hungarians use their own currency, am I right?

  5. Anonymous

    Just because the price of goods in Hungary is increasing doesn’t mean the dollar is losing value, it just means that Hungary is experiencing inflation. Hungarians use their own currency, am I correct? How is that related to the dollar? It is saddening to see prices rise in an already poor country, but it’s hard to make a case saying it’s because of the dollar.

  6. revtom

    Thanks for commenting anonymous, what you are missing here is the fact that these posts are refering to Americans living in Hungary to serve Hungarians. If this were not the case you would be correct in your assertion. However, the posts are designed to illustrate the struggle of the ex-pat on a limited and shrinking budget… As far as the reality of the falling dollar and the gaining inflation, I refer you to the statistics linked in the post… thanks for weighing in!

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