OKSZ’s assessment of food inflation

This is also indicated by the examination conducted by the Hungarian Competition Authority in two product groups (milk and dairy products and eggs), which concluded that the price wave that started in the second half of 2024 was mainly due to the increase in overhead costs of producers and processors, the increase in labor costs, and the increase in product fees, while retail margins have decreased or remained unchanged since mid-2023. The listed factors influencing price increases affect all segments of food production (meat, bread, etc.) equally, and are now supplemented by the increase in the price of seasonal products. These effects the margin stop can only cover it up, not treat it.

The National Trade Association therefore believes that problems should be treated where they arise, and not elsewhere, which is why the elimination of the margin stop at the end of August is justified. The margin stop is essentially harmful in every aspect to trade, the population, and even the entire economy: trade is forced to restrain its investments, it can launch fewer and smaller-scale actions, and it will not only be more resistant, but also more vulnerable to price pressure from suppliers, which is reflected in the current price increases.”