On July 1, 2024, the government will end the mandatory discounts and price caps on essential food items in the retail sector.
Together with online price monitoring, the price cap has made a significant contribution to reducing inflation, initially to a single-digit figure and then further to around 4%. Competition in the retail sector has also intensified, the Ministry of Economic Affairs emphasized.
The regulation introduced in June 2023 obliged retailers with sales of HUF 1 billion (EUR 2.5 million) or more to offer certain products at a discount. Last August, the mandatory discount was increased from 10% to 15% and extended to other product groups. This made foodstuffs such as poultry meat, dairy products, bread and fresh fruit and vegetables significantly cheaper.
With the expiry of the price cap, the government is returning to market-based pricing. Online price monitoring should continue to ensure transparency and strengthen competition in the retail sector.