The Hungarian Economic Competition Authority (GVH) has reported that it conducted several comprehensive expedited sector investigations in 2023, revealing that some retailers have significantly raised prices of essential food items beyond justified levels.

The investigations indicate that substantial profit margins on various products, including dairy and non-perishable goods, have notably contributed to the considerable rise in food inflation.

GVH President Csaba Balázs Rigó initiated a proposal in March 2023 to establish an online price monitoring system, influenced by the findings of these investigations and international examples.

The system, accessible at www.arfigyelo.gvh.hu, tracks daily prices of over 2,000 different food products across more than 1,200 stores of six major retail chains nationwide, covering 78 product categories.

This online platform provides precise information on price changes, including reductions.

Following the government's imposition of a price cap on margins, data from the online system indicates price decreases for several essential items, such as dairy products and eggs, as of Monday.

Rigó stated, "The GVH supports every available initiative aimed at reducing food prices.

The national competition authority stands with the Hungarian people and is prepared to intervene and initiate new investigations.

I firmly believe that the temporary application of margin regulation for a specified period serves the interests of Hungarian citizens, particularly families and pensioners."

Minister of Economic Development Márton Nagy noted that signs of the impact of the margin cap could be visible as early as March.

He is also anticipating a new proposal from banks regarding the reduction of account fees.

The Prime Minister has asserted that the full effects of the margin cap could result in a two-percentage point decrease in food inflation, potentially lowering the rate of price increases in this segment to below 7% by April.

Alongside monitoring food prices, the Ministry of Economic Development is also observing bank fee structures.

Nagy reiterated concerns that bank account fees have risen alarmingly, significantly faster than would be justified by transitioning household transactional fees, which he deemed unacceptable.

The intention to request a special Basic Account package proposal for families and pensioners has been communicated to banks.

However, the first proposal received from the banking association has been deemed inadequate by the Minister.