The food price caps, the mandatory promotions, and the online price monitoring system proved to be effective in breaking down the sanctioned inflation, but at the same time, after the introduction of the mandatory promotions, the commercial chains implemented simultaneous and significant price increases for basic products, which is why the Ministry of National Economy intervenes and initiates a competition law investigation.
Measures introduced by the government to protect families, such as food price freezes, mandatory promotions and an online price monitoring system, have been successful in reducing sanctioned inflation. At the same time, following the termination of the mandatory promotion, the commercial chains implemented simultaneous and significant price increases in the case of basic foodstuffs, against which the Ministry of National Economy takes decisive action and initiates a competition law investigation by the Economic Competition Office, the ministry announced.
In the announcement, they remind: the system of mandatory promotions entered into force on June 1, 2023 at the proposal of the Ministry of National Economy. Promotions and the online price monitoring system together contributed significantly to reducing inflation. In order to protect families, the consumer protection authorities strictly checked compliance with the rules: they investigated nearly three thousand stores and imposed a fine of about HUF 650 million, Magyar Nemzet .
The government continuously monitored the development of inflation and the related measures and determined in June 2024 that the mandatory campaign had achieved its goal, therefore the measure was implemented on July 1, 2024. However, in order to maintain retail competition, they continue to operate the online price monitoring system.
Based on the daily updated price data of the online price monitoring system, it has become clear that after the compulsory promotion was abolished, the consumer prices of fine flour, 2.8 percent UHT milk and granulated sugar, among other things, rose significantly at the largest retail chains.
The largest retail chains increased the price of brand-name fine flour by almost 80 percent on average, but in some stores the price of certain flours increased by more than 100 percent. The price of producer-brand milk increased by an average of 45 percent, while the price of producer granulated sugar increased by more than 25 percent on average. The prices of private label products also - albeit to a lesser extent - rose by an average of 30 percent in all three product categories.
The Ministry of National Economy investigated the situation from a consumer protection point of view and came to the conclusion that
the price increases are excessive, therefore a competition law investigation of the simultaneous and significant price increases of the retail chains is necessary.
The ministry emphasized that it is committed to the protection of Hungarian families, and therefore initiates the initiation of an investigation by the Economic Competition Office, and urges that consumer protection and the Economic Competition Office act together against businesses engaging in unfair practices.
MTI / Hungarian Nation
Cover image: Illustration - MTI/Róbert Hegedüs
