No dramatic price rises, some products will be even cheaper in Hungary from August

The Hungarian government has decided to scrap the food price cap in August. However, it is unlikely that this move will increase prices drastically. On the contrary, we will be able to find products available at lower prices.

The price cap will be lifted

The Hungarian government has extended the law on food at public prices until 31 July, when it will be repealed. This led many to believe that the prices of food products that had been subject to mandatory special offers would rise dramatically, but this is not the case. In fact, with the exception of product, prices will drop.

Under the regulation, the market prices of the eight food products concerned will be restored in two stages, not immediately, but after a transitional period. The government regulation prevents traders from reacting to the abolishment of the regulation with significant price increases.

Traders can apply higher margins, but a real price rise is expected from October. In addition, under a new regulation introduced by the Hungarian government in June, they will have to offer two products a week at a discount of at least 15 per cent.

Gradual return to the market price

The official price was in force for a year and a half. Inflation has hit record highs and food prices have risen at an unprecedented rate. If the price cap had been lifted prematurely, prices would have tripled for all the foodstuffs concerned.