The National Trade Association is preparing a proposal to eliminate margin squeeze

By: Trademagazin Date: 2025. 05. 20. 12:45

In order to avoid further uncertainty, the international food retail enterprises of the National Trade Federation (OKSZ) are proposing to the government a smooth phasing out of the margin freeze, the organization informed MTI on Tuesday.

According to the statement, OKSZ has commissioned an external economic consulting company to develop the proposals in order to objectively assess the situation. The final proposals will be prepared taking into account competition law regulations.

The association reminded:

According to the current legislation, the food margin freeze ends on May 31, but the government has also raised the prospect of extending it in several public forums.

According to Tamás Kozák, Secretary General of OKSZ, this uncertainty in itself is enough to cause confusion among consumers, retail players and suppliers.

The margin freeze has already strongly distorted market conditions, so it is necessary to ensure that its elimination is smooth for the government, suppliers, retailers and customers, he emphasized.

The margin freeze was able to fulfill its intended role, but this contribution of retail chains to reducing the burden on Hungarian families is no longer sustainable after May 31, because price increase demands are constantly coming from supplier partners, the OKSZ emphasized.

In its statement, the trade association explained, among other things, that the margin freeze only temporarily supports the reduction of inflation.

Product paths are distorted, which has an import-increasing effect. This can reduce food industry output, net exports, and thus lead to a decrease in GDP. These distortions can only be restored slowly.