Food price caps in Hungary may be extended, here are the details

The Hungarian government’s food price caps are currently in force until 30 June. However, there are reports that there will still be special offers on basic foodstuffs in July.

Food price caps may remain

According to Index, the Hungarian government is extending the food price freeze. Thus, from 1 July, we will still be able to buy basic foodstuffs at a lower price.

Gergely Gulyás, PM’s chief of staff, said at Monday’s cabinet meeting that a decision on the issue could be taken at the next cabinet meeting.

Many people thought that the introduction of compulsory in-store promotions and the online price monitoring system together could trigger a food price freeze. Price freezes are likely to remain because, although inflation has fallen according to the Central Statistical Office (KSH), it is still high, especially in the case of food.

For example, confectionery flour was 59.6 percent more expensive than in May last year, but bread and dairy products were up 52.7 percent and 51.3 percent respectively.

How long can it be in force?

The more conservative thinkers say that the price cap will only be in place for an extra month or two, but could be as long as six months, which would mean that the price caps remain in place until the end of the year.

According to official communication, the aim of the Hungarian government is to achieve single-digit inflation. Accordingly, the price controls may remain in place from 1 July. There will still be cheaper access to granulated sugar, wheat flour, refined sunflower oil, pork legs, chicken breast and cow’s milk with a fat content of 2.8 percent. You can also buy chicken eggs and table potatoes at fixed prices.