Food Prices Falling Steadily

MTI-Hungary Today 2023.08.07.

Food prices are falling steadily, and the single-digit inflation forecast by the government for the end of the year is within reach with a high degree of certainty, the Parliamentary State Secretary of the Ministry of Economic Development told Kossuth Radio. János Fónagy stressed that the online price monitoring system, in operation for a month, has proved to be extremely effective, with average prices in the 62 product categories monitored falling by almost eight percent.

The state secretary said that the biggest drop in the last month was in the price of spaghetti, falling by 15 percent, while the price of vegetables and fruit falling by more than 14 and seven percent respectively. Prices of bread, margarine, lard, and dairy products fell by an average of 10 percent in a month. Among meats, turkey breast prices fell the most, by nearly 11 percent, while chicken breast fell by more than six percent.

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Important changes include the abolition of the food price freeze from August 1, an increase in the mandatory promotion categories, and the possibility to buy cold food in shops with SZÉP cards.

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.

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).

Along with the abolition of the price freeze, the government has increased the mandatory promotion rate from 10 to 15 percent to further increase price competition, and products that were previously subject to the price freeze have been included.

Promotions and the online price monitoring system have a strong downward effect on prices, with sometimes fierce price competition introduced between retail chains,

János Fónagy pointed out.

The state secretary stressed that the control is very strict, and sanctions are very severe in the case of possible illegal behavior, incorrect data provision, or bad faith. He added that the vast majority of retail chains are compliant, emphasizing that the good functioning of the market is in the interest of consumers and food retail chains. Fónagy also pointed out that consumers have become more aware and have quickly become familiar with and use the online price monitor.

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Via MTI, Featured photo via Pexels