Hungarian government could discuss non-food markups cap, insurers are also affected
The government could discuss a measure that would cap markups on a range of household products at specialised shops at a cabinet meeting on Wednesday, National Economy Minister Márton Nagy said in a video message on social media on Tuesday.
New markups cap
Nagy said the new reduction on markups could be announced on Thursday.
He added that the cap would apply to several thousand products in 30 categories, including laundry detergent, washing-up liquid, paper tissues, and shower gel, resulting in price reductions of 16pc-18pc on average.
He said the measure would apply to shops that specialise in household products, such as DM, Rossmann and Müller, which account for over 40pc of those goods, but not supermarkets that sell food and non-food products.
He added that the measure would remain in place from the middle of May until the beginning of September.
Goverment drafts rules focused on home insurance
Nagy said in a video message on Facebook on Tuesday that the government is drafting rules focused on home insurance policies.
Nagy said the cabinet was expected to decide on the matter during the week. “We’re negotiating with insurers, but it’s difficult and there is no sign of agreement, which is why we’re drafting financial regulations focused on home insurance,” he added. As the government does not want to see home insurance premiums rise, they will be capped at end-2024 levels, but the scale of coverage will be raised to keep homes from being underinsured, he said.
Ministry: Food markups cap brings down prices
A government-mandated cap on markups has reduced prices on a range of food products at big supermarket chains by 19.3pc, on average, a state secretary at the Culture and Innovation Ministry said on social media on Tuesday.
Róbert Zsigó said the 10pc markup cap had reduced prices of 905 products since its rollout in March. He added that the prices of 270 products had fallen by at least 30pc.
Zsigó said that 723 shops had been checked for compliance, so far.
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Just what we need – more communist inspired policies where government officials determine prices. Who cares about free market economy and competition between businesses, communism worked so well before, right? Soon we wont have any real competition between businesses and when price caps are removed, prices skyrocket. We really need to vote this authoritarian conservative communist government out before they fully destroy Hungarian economy.