Price increases for products with previous price caps: an investigation may be launched against the store chains
The Ministry of National Economy (NGM) recently expressed its concerns about the fact that large chain stores simultaneously raised the prices of products that were previously subject to price caps and then to mandatory promotions. In particular, they mentioned manufacturer-branded milk, granulated sugar, and fine flour, the prices of which have risen significantly since the beginning of July. The ministry turned to the Economic Competition Authority (GVH) to investigate whether anti-competitive pricing had taken place.
As of July 1, 2024, the mandatory promotions for products with a price cap, according to which the products had to be sold at a maximum purchase price, ceased. After that, the prices of the previously price-capped products suddenly increased. The NGM is now wondering whether illegal market behavior is behind the price increases. – writes the G7.
Analysis of PÁIR and price increases
Based on the weekly reports of the Market Price Information System (PÁIR) of the Agrárgazdasági Research Institute, procurement and consumer prices can be easily monitored. Based on the reports, it can be seen that there were indeed significant consumer price increases for the products mentioned by NGM, but the increase in purchase prices also played a role in this. One of the best-studied products is milk, where changes are clearly visible for UHT milks of different fat content.
The NGM highlighted that the price of the manufacturer’s branded UHT milk with a fat content of 2.8 percent increased by 45 percent after July 1, which can also be verified based on the PÁIR data. Store chains sold this milk product at a 71 percent markup of the purchase price in July-August, while milk with a fat content of 1.5 percent was sold at an 89 percent markup in the same period.
Related news
Frost hits Hungarian orchards – season starts with price hike and supply shortage
As May marks the last month of spring and the…
Read more >Food inflation in Turkey slowed slightly in April
In Turkey, annual inflation slowed to 37.86 percent, the lowest…
Read more >Eurozone inflation rose slightly in April
Eurozone inflation in April was higher than expected and unchanged…
Read more >Related news
Márton Nagy: the government would introduce margin restrictions for stores selling household goods
The government may discuss on Wednesday and is expected to…
Read more >More expensive Barbie, thinner Heinz – Trump’s tariffs redraw the global consumer market
The impact of Donald Trump’s tariff policy is affecting more…
Read more >Almost 20 percent cheaper food? The government is satisfied with the results of the margin reduction
“Thanks to the margin reduction, more and more products can…
Read more >