Hungarian EcoMin: New food price discount scheme effective

Government-mandated discounts on some supermarket produce introduced on June 1 to curb sanctions-related inflation has been effective, according to the ministry of economic development, adding that supermarkets were now competing to undersell produce.ű

The scheme “has been effective in increasing market competition, reducing inflation and protecting families against its effects,” the ministry said in a statement.

Following Hungarian government measures, inflation related to the war in Ukraine peaked in January, after which its rate dropped first “visibly” in May, the statement said, adding that inflation may drop to below 20 percent in June.

As a result of new government measures, inflation is expected to further drop to single figures before the end of 2023, it said, noting that the cap on food prices will be removed on Aug. 1.

Meanwhile, the government has decided to expand 20 food categories that are currently subject to mandatory discounts at small retailers from Aug. 1 with the aim of boosting competition and protecting families, the ministry statement said.

Source: MTI