Mandatory Promotions in Shops after Conclusion of Price Freeze

Hungary Today 2023.08.01.

Although the price freeze is being phased out, the good news is that the mandatory food price action is increasing, reports Mandiner.

Official price controls on food first came into effect in February of last year, as inflation spiraled out of control when the Ukrainian war broke out, with the government capping the prices of a few essential foodstuffs for the first time.

Over the months, the government extended the provision several times, but at the end of last month it was revealed that it would be phased out. The government justified this by saying that inflation figures have already improved considerably. Many had thought that the decision would allow staple food prices to skyrocket again from August, but the mandatory promotions would remain in place to prevent this.

Grocery stores will have to sell at least one product at a discount of more than 15 percent for at least a week.

In addition, retailers are obliged to keep sufficient quantities of the products on the shelves and in the store during the mandatory promotions to ensure that customers can continue to buy the cheaper food products. It was stated that the food price freeze, being in place for a year and a half, would be phased out so that the compulsory promotion would be extended to the range of products concerned.

Mandatory Special Offers Coming to Supermarkets

According to the Economic Development Minister, people do not buy everything in one place, so compulsory special offers on certain goods will help reduce food inflation.Continue reading

Fact

The mandatory promotion currently covers poultry meat, pork and beef, fish and canned fish, meat products, milk, cream and substitutes, yogurt, other fermented preparations, other dairy products, cheese, butter, margarine and its preparations, other fats and oils, bread, pastry, dry pasta, rice, other cereals, flour, sugar and preserved flour products, fresh vegetables, fresh fruit, fruit and vegetable juices, prepared meals and dishes, spices, condiments and seasonings, coffee, tea, mineral waters, and soft drinks.

From August, the mandatory promotion will be extended to include granulated sugar, wheat flour, sunflower oil, home-made pork thighs, chicken breast and chicken tail, 2.8% UHT milk, eggs, and table potatoes (except new potatoes).

Domestic shoppers will also be helped by the fact that since July, they are able to check online where a particular food item costs the least. The price monitoring system has triggered a fierce daily price competition between retailers, with food inflation falling by two percentage points since its introduction.

Online Price Monitoring System Seems to Be a Huge Success

In the future, a wider range of products could be included on the list of the online price monitoring website.Continue reading

In addition, from August, a change will be introduced so that the SZÉP card can also be used to buy cold food, giving a further boost to the dismantling of inflation.

Fact

The Széchenyi Pension Card (SZÉP Card) is a universal electronic voucher in card format, that employees can receive from their employer as a fringe benefit within the framework of the cafeteria system.

Via Mandiner, Featured photo via Pixabay