Taxi drivers in Budapest want a 10% fare hike, which would, in fact, make trips about 20% more expensive. They argue that they are about to go bust and could not keep up with the hordes of passengers earning minimum wage. But if the fares were raised they would have no problem providing services for them.
Alrighty then. Now, let’s take a look at two simple charts to put the fare hike intentions into context. The first shows how average consumer prices and cab fares changed compared to the end of 2012. (The dotted line indicates the likely trend of the following few months if fares were to be raised by 15%, which seems like a good bargain considering the actual demand by the cabbies.)
But hey, let’s not be so unfair. The cost of the taxi drivers’ business and livelihood do not change according to inflation. Fuel price changes have a much greater influence on these.
Oops. We’re still unfair, aren’t we. Then surely, the drastic fare hike and cost cuttings of the last few years are probably just beginning to create an acceptable position for Hungarian cabbies in regional comparison. The table below attests that. Wait, it doesn’t...
Charting is displayed using TradingView's technology, a platform, where you can build advanced charts,
spot upcoming trends in the stock screener, and find inspiration in multiple trading ideas
