OKSZ’s commentary on the latest inflation data

By: Trademagazin Date: 2025. 11. 11. 12:52

🎧 Hallgasd a cikket: Nyelv: Sebesség: 1.05×

There is no significant change in the development of the consumer price index, food inflation now remains permanently below 5 percent, and is pulling the consumer price index down. The margin freeze is not needed, but its harmful effects are becoming increasingly apparent, with more and more settlements becoming deserts in terms of retail.

The rate of price increase of food available in retail remained below the desired 5 percent in October. “This is the seventh consecutive month of this kind, so we can now safely say that food inflation will remain permanently below 5 percent. This is significant because when the government representatives introduced the margin freeze, this value was set as the condition for phasing out the measure,” says Tamás Kozák, Secretary General of the National Trade Association.

The Central Statistical Office registered an annual price increase of 3 percent in September and 1.7 percent in October in the food and non-alcoholic beverages product group, meaning that the food price increase is not only low, but also pulling the consumer price index down. A similar trend is expected in the coming months due to the base effect.

The margin freeze does not live up to the hopes attached to it. After a one-off price decrease in April this year, inflation will return to its original path next spring, the real problem (supplier prices) swept under the rug increase, structural problems of the supply chain) reappear. The margin freeze did not increase retail turnover either; on the contrary, due to its destabilizing effect, food consumption continues to grow at a rate below potential.

The margin freeze is as ineffective as it is harmful to retailers, customers and the Hungarian economy.

The retailers affected lose 15-20 forints for every 100 forints in sales of products affected by the margin freeze, which reduces retail investments.
The official intervention also sucks customers out of small town shops, which turns entire towns into commercial deserts.
Finally, the measure increases the import share, worsens the market position of domestic food production, and, due to its nature, restrains real price competition between retailers.

The extension and expansion of the retail margin freeze in October was a wrong decision, the measure should have been implemented instead. According to the National Trade Association, this should definitely be done at the next decision in February.