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Hungary. The government has lifted the price limit on basic food products

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On Tuesday, the Hungarian government lifted price caps on staple foods that had been in place for a year and a half. At the same time, from August, the number of mandatory promotions in stores, mandated by the government, will increase.

The abolition of price limits for food products was announced in June by the head of the Prime Minister’s Office, Gergely Gulyas. The reason for their cancellation is the decline inflationobserved on Hungary from January. According to Gulyas, the price caps have done their job, so it’s time to lift them.

The prices of some products have increased by several dozen percent

According to the Telex portal, some prices of products covered by the limits so far increased by several dozen percent on Tuesday, although this is not the rule. In different stores, the prices of individual products were different. In some places, the price was even lower than during the limits.

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Simultaneously the government increased the mandatory price reduction of selected product categories from 10 to 15 percent from August. “The rule requires that at least two products of each type are offered with a minimum discount of 15% of the purchase price per week,” writes the Telex portal.

In-store promotions required by the government took effect from early June, covering products in 20 categories. From August, products that were previously subject to mandatory price limits will join this list.

In Hungary, an online price monitoring system has also been in operation since July, which is intended to increase competition on the market and thus reduce the prices of food products.

Price freeze

In February 2022, Viktor Orban’s government imposed a price freeze on six staple foods; price limits included: sugar, flour, sunflower oil, chicken breast, pork leg and milk. Eggs and potatoes were added to the list in November.

Hungary also had a cap on fuel prices, but it was lifted by the government in early December 2022 at the request of the oil and gas company MOL. The reason was the difficult situation with regard to fuel supplies to Hungary.

The government of Viktor Orban announces that by the end of the year inflation will fall to the single-digit level. According to the last reading in June, it amounted to 20.1 percent. and remains at the highest level in the European Union.

Main photo source: Raketir/Shutterstock

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