Average 16 Percent Drop in Food Prices Thanks to Margin Freeze

The freeze affects about 1,000 products in 30 product categories, and based on data released on Monday evening, the prices of these food products have fallen by an average of 16 percent, said Márton Nagy, Minister for National Economy, at a press conference on Tuesday.

The minister emphasized that the 16 percent average decrease exceeded the government’s expectations, and as re-pricing continues, the price drop could be even bigger. Initial results show that the intervention is successful, he pointed out.

Prices are compared to March 13. Prices of certain milks, yoghurts, sour cream, curd cheese, and edible fats have fallen the most, by more than 50 percent,”

he indicated.

The minister said that out of 1,000 products, prices had fallen on some 760 items, while on 160, there had been no price reduction, which was possible if the margin was below 10 percent. “A small price increase was observed in about 70 cases. Two reasons were found for this: one was a data error and the other was that some products were on sale on March 13, and the price increased after the sale ended,” he noted. The list from March 13, was uploaded to Árfigyelő (online price monitoring system) and can be used to compare price movements of products every day, he pointed out.

Minister Nagy mentioned that

the government will decide at the end of May whether the price freeze will end, continue, or even go further, because a bigger price reduction is needed.

Regarding possible quantity restrictions in stores, Márton Nagy stressed that they are aimed at limiting the ability of retailers to buy from each other, not consumers.

In response to a question, he said that the margin regulation affects about a third of food products. If inspections show that prices of other products are starting to rise, they will be reduced, he added.

Via MTI, Featured image: MTI/Balogh Zoltán