Mandatory Supermarket Food Price Discounts in Hungary to End Soon
- 26 Jun 2024 4:25 PM
- Hungary Around the Clock
The government will abolish mandatory discounts on food products at big supermarkets from July 1, but the price-monitoring system will remain in place, the Economy Ministry announced on Tuesday.
Under the scheme introduced in June 2023 in an effort to bring down inflation, retailers must regularly offer discounts of up to 15% on several food products.
The regulation initially applied only to retailers with annual revenue of Ft 500 million or more, before the base level was raised to Ft 1 billion and the level of discount required was increased from 10% to 15%.
The ministry said the mandatory discounts had achieved their goal of bringing down inflation and created strong competition among retailers.
It added that real wages have been rising since September, which has contributed to higher spending by households, fuelling economic recovery.
The online price-monitoring platform, which compares prices on dozens of products, will remain in place.
Although food prices are no longer the main driver of inflation, they have increased by more than 75% since 2020, making them the fastest-rising product category, financial website Portfolio observes.
Last month, food prices were 1% higher than one year earlier, as average annual inflation for the month was 4%.
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