Hungarian Minister Considers Expansion of Price Cap Measures Amid Rising Food Inflation
Economic Minister Nagy Márton outlines potential broadening of price cap categories and discusses support measures for small retailers.
Nagy Márton, Hungary's Minister of National Economy, announced during a press briefing on Tuesday that the government is considering an expansion of the current price cap measures affecting 30 product categories.
He emphasized that the government remains committed to controlling food prices, although he noted that it is too early to make definitive decisions regarding the expansion.
"If necessary, the price cap will return," he stated.
The minister shared initial insights from the ministry's experiences, suggesting that the effects of the price cap might begin to manifest in food price inflation as early as March, with an anticipated decrease of two percentage points in food inflation by April.
Should these projections materialize, the rate of price increases within this sector could fall below 7% in the coming month.
The price cap initiative affects over 1,000 products, and according to the minister, the average price reduction for these items has been approximately 16%, exceeding the previously projected 10% by the government.
Ongoing price adjustments might further enhance this reduction, he indicated.
Recent data show that at one of the largest retailers, price declines for affected products reached 8.6% compared to the previous week.
Nagy Márton addressed concerns regarding cross-pricing, stating that it will not be permissible at this time, effectively preventing price increases for other products.
However, he assured that the government would take action should such price hikes occur.
Notably, some retail chains have already implemented purchasing restrictions due to the price cap measures.
Comprehensive information regarding the price caps and their potential impacts has been consolidated for public access.
"We met with traders again yesterday to discuss pricing and regulatory issues.
The authorities' sole responsibility is to ensure compliance with the rules," the minister explained.
A government decision on the future of the price caps is expected by the end of May, with the intervention deemed successful based on current pricing trends.
Regarding the impact of price caps on small shops, the minister stated that the government is monitoring any negative effects and is contemplating similar support initiatives as seen in previous programs.
Nagy Márton also addressed a recently announced plan to potentially regulate bank account fees, noting that this can only be accomplished by the Hungarian National Bank.
A working group has been established to explore these options.
"I am giving banks a week or two to reduce their account charges," he remarked and added that discussions will also be initiated with the telecommunications sector to address potential fee increases.
He emphasized that the government remains committed to controlling food prices, although he noted that it is too early to make definitive decisions regarding the expansion.
"If necessary, the price cap will return," he stated.
The minister shared initial insights from the ministry's experiences, suggesting that the effects of the price cap might begin to manifest in food price inflation as early as March, with an anticipated decrease of two percentage points in food inflation by April.
Should these projections materialize, the rate of price increases within this sector could fall below 7% in the coming month.
The price cap initiative affects over 1,000 products, and according to the minister, the average price reduction for these items has been approximately 16%, exceeding the previously projected 10% by the government.
Ongoing price adjustments might further enhance this reduction, he indicated.
Recent data show that at one of the largest retailers, price declines for affected products reached 8.6% compared to the previous week.
Nagy Márton addressed concerns regarding cross-pricing, stating that it will not be permissible at this time, effectively preventing price increases for other products.
However, he assured that the government would take action should such price hikes occur.
Notably, some retail chains have already implemented purchasing restrictions due to the price cap measures.
Comprehensive information regarding the price caps and their potential impacts has been consolidated for public access.
"We met with traders again yesterday to discuss pricing and regulatory issues.
The authorities' sole responsibility is to ensure compliance with the rules," the minister explained.
A government decision on the future of the price caps is expected by the end of May, with the intervention deemed successful based on current pricing trends.
Regarding the impact of price caps on small shops, the minister stated that the government is monitoring any negative effects and is contemplating similar support initiatives as seen in previous programs.
Nagy Márton also addressed a recently announced plan to potentially regulate bank account fees, noting that this can only be accomplished by the Hungarian National Bank.
A working group has been established to explore these options.
"I am giving banks a week or two to reduce their account charges," he remarked and added that discussions will also be initiated with the telecommunications sector to address potential fee increases.
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.
