New caps on food prices, extraordinary announcements expected tomorrow

The government is expected to announce new caps on food prices tomorrow. The extraordinary government info will start at 10 am. Below, we present you a list of products on which the Orbán administration may extend the food price cap from tomorrow.

Alexandra Szentkirályi, a government spokesperson, announced this afternoon that they would hold government info from 10 am tomorrow with Gergely Gulyás, the prime minister’s chief of staff. Hungarian media expects that there would be announcements concerning the extension of the administration’s food price cap scheme. PM Viktor Orbán talked about a possible extension last week during his regular interview with public broadcaster Kossuth Rádió.

Index.hu wrote that the extension might concern eggs, potatoes and Trappist cheese. Furthermore, it may include bread, pasta, or rice. Tibor Navracsics, the minister for regional development and the uptake of EU funds, said the government might decide about the food price cap scheme extension tomorrow. He added they reviewed the state of inflation at every government session. Including more products in the cap scheme was always on the table, Navracsics added.

Márton Nagy, the minister for economic development, told InfóRádió yesterday that they would like to extend the price cap scheme to food articles that have a higher than 40 percent yearly price increase and can be produced in Hungary. He added the future of the price cap scheme would be defined by the Hungarian inflation rate.

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Mfor.hu argues the Hungarian inflation rate is among the EU’s highest. Moreover, the news portal believes it could only be reduced if the government decreased the VAT, which is very high in Hungary, even in a global comparison. The food price cap scheme the government introduced in February did not help. For example, the price of bread increased by 76.9 percent by September within just one year. That is twice the Latvian rate. 

Based on Márton Nagy’s statement, the Hungarian economic media outlet said the following foods might be capped tomorrow:

Furthermore, the price cap scheme extension may concern spaghetti, beef, drumstick, coffee, eggs, rice, chicken wings, watermelon, potatoes and even hamburgers, mfor.hu said.

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Source: mfor.hu, index.hu, Infórádió