Retailers’ association: sustained profit margin caps would cause “irreversible damage”
Retailers’ association OKSZ recommended the government phase out a cap on markups on a range of food products and argued that extending the measure to non-food products was unwarranted in a statement issued on Tuesday.
OKSZ said the impact of the markups cap on inflation was limited to the short term and warned that the measure could cause “irreversible damage” to the economy by putting retailers’ operation at risk.
Extending the markups cap past the initial phase-out date and expanding the measure to non-food products “flies in the face of market logic”, OKSZ said, adding that household products, mainly produced by multinationals, accounted for just 2-3pc of the consumer basket and had become dearer to a “minimal” degree in the past year.
Read also:
- Orbán cabinet confident that price margin caps bring down prices – details HERE
- Purchase limits, rising prices: downsides to the price margin caps in Hungary
Logic does not come into it – our Politicians play to the Base.
“Action!” – looking good for the masses, at the expense of anything resembling a minority or group people are unlikely to care about or empathize with.