The government of Hungary has decided to freeze the prices of six widely used food items. This measure aims to counter the persistent price increases caused by inflation. Earlier, the Hungarian government had already reduced the VAT rate on many food products to 5 percent.
The items involved are granulated sugar, wheat flour, sunflower oil, pig's trotters, cow's milk with 2.8% fat, and chicken breast. Since early February, prices for these six basic food products may not be increased. Until May 1, they may not be sold at a higher price than they were on October 15, 2021.
Moreover, these goods must always be available on the store shelves; signs indicating the food price freeze must be placed at supermarket entrances. Compliance will be strictly monitored by the state consumer protection authority.
“This way, customers can be sure that everyone has access to their chosen food at a reduced price,” said Hungarian Ministry of Agriculture State Secretary Feldman. According to him, the measure should not result in losses for Hungarian farmers and the food industry, as the costs should be absorbed by retailers, who he says have previously made sufficient profits.
Last year, Hungary came into conflict with the European Union when it attempted to force supermarkets to stop selling imported food products and sell only local and Hungarian products. On grounds of “market disruption,” this was not permitted, but supermarkets did decide to promote national products more extensively.