Consumer prices rose slightly by 0.7 percent compared to June.Continue reading
To address inflation and protect families, the Hungarian government introduced new initiatives, including food price caps, mandatory sales promotions, and an online price monitoring system. These measures aimed to counteract inflationary pressures caused by sanctions and rising living costs.
After the mandatory sales promotions ended on July 1, 2024, major retail chains significantly increased prices on essential goods such as flour, milk, and sugar. The price of branded flour surged by nearly 80% on average, with some stores reporting over 100% increases. Branded milk prices rose by approximately 45%, and branded sugar saw an average increase of over 25%. Even private label products experienced significant price hikes.
In response, the Ministry for National Economy (NGM) announced an investigation into these price increases.
The NGM found the simultaneous and substantial price hikes by retail chains concerning and deemed them excessive. As a result, the Ministry has initiated a competition law investigation with the Hungarian Competition Authority. The Ministry emphasized its commitment to protecting Hungarian families and ensuring fair competition, underscoring the need for joint action to address unfair business practices and maintain market fairness.
Via MTI; Featured Image: Pixabay