Hungary’s government is taking decisive action to curb unjustified price increases on essential food items. Prime Minister Viktor Orbán announced on Tuesday via a video posted on his social media platform that the government will introduce a price cap to ensure affordability and protect consumers.
Orbán revealed that recent discussions with representatives of major retail chains failed to yield satisfactory solutions. ‘Unfortunately, the offers from retailers fell far short of our expectations,’ Orbán stated. ‘Therefore, we have decided to implement measures targeting the retail sector.’ From mid-March, the profit margin on 30 key food items will be limited to a maximum of 10 per cent.
The Prime Minister highlighted that the current profit margins on certain products were unacceptably high. For instance, the margin on eggs had reached 40 per cent, while butter and sour cream exceeded 80 per cent. ‘Clearly, this is unacceptable,’ Orbán emphasized.
The new regulations will require that for any essential food item where margins have disproportionately increased, consumer prices must not exceed the acquisition cost by more than 10 per cent. The government will also implement monitoring systems to ensure compliance with this directive.
The price cap will be enforced from mid-March and remain in effect until the end of May. However, Orbán indicated that the government is prepared to extend the measures if necessary. ‘We will review the situation at the end of May, and if required, continue these measures. We will put an end to excessive and unjustified price increases,’ he asserted.
In his announcement, Orbán provided a comprehensive list of the food items subject to the regulation. These include various poultry products such as chicken breast fillet, chicken thighs, chicken backs, wings, and whole chicken. Turkey breast fillet is also included. Dairy products like UHT milk (with 1.5 per cent and 2.8 per cent fat content), ESL milk (with similar fat percentages), sour cream, butter, margarine, natural yoghurt, fruit yoghurt, and cow’s curd are covered.
This move is part of the Hungarian government’s broader effort to mitigate the rising cost of living and ensure that essential goods remain accessible to the population. The government has faced increasing public pressure to address inflation and prevent unjustified price increases from eroding household incomes.
Retailers will be closely monitored to ensure adherence to the new rules, and any breaches could lead to enforcement actions. The government emphasizes that these measures are aimed at protecting consumers and ensuring fair market practices during a period of economic strain.
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