Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Food price cap will remain in effect for 3 months but can be extended

Food price cap will remain in effect for 3 months but can be extended

The decision on capping prices will remain in effect for three months but can be extended, the prime minister’s chief of staff said.

Gergely Gulyás said the reason last October’s prices were used as the reference for the cap was that there had been no inflation pressure then and “nobody was complaining yet” about prices at the time. Gulyás said that hopefully the measure would make life easier for those struggling to make ends meet. He noted that the price of sugar, wheat flour, sunflower-seed oil, pork leg, chicken breast and milk with 2.8 percent fat will be reduced to their price on Oct. 15 last year.

Retailers must stock the products in question and “a multi-level, strict system of penalties” for rule-breakers included a possible ban on trading, he said. The decree to be published within the next few days will stipulate fines against violators at the earliest stage, he added. In response to a question, he said it was a reasonable cause for concern that retailers may counterbalance the loss resulting from the new measure by raising other prices. The government will monitor the developments, he added.

The government also has access to other means of regulating prices, he said, adding that Hungary’s legal system recognised the institution of centrally regulated prices.

In response to a question, he said

"the government would not compensate retailers for a shortfall in their revenues stemming from the rollback of food prices."


Retailers have an annual 150 billion forints in profits, while the new measure will not even cost them 20 billion, he argued. Gulyás said the government had been careful not to cripple any of the industries when it determined the specific products the policy would apply to.

"Regulating the price of bread, for example, would have generated losses for bakeries,"


he said.

The government is seeking ways to suppress inflation and hopes that predictions about inflation returning to 2-4 percent this year would turn out to be the case. He added that no other government was introducing as many anti-inflation measures as Hungary’s.

The measures aimed at reducing inflation are expected to result in a combined 2 percentage point reduction, he added.

"He also said that reducing VAT tended not to lead to a drop in retail prices but rather increased retailers’ profits."


Commenting on the planned purchase of Budapest Airport, he said, “We will wait until after the [April 3 general] election” but the government’s position remains unchanged:

“We always considered it right for the national airport to be in state ownership, or at least in Hungarian ownership.”


Meanwhile, Gulyás noted that the French president had participated in a Visegád Group meeting during Hungary’s presidency of the group, adding that the German chancellor, too, was welcome to attend a V4 meeting.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
×