The big question of autumn: can the price competition between stores be renewed?

By: Trademagazin Date: 2023. 08. 22. 14:00

Since the introduction of the price watcher, a significant decrease in prices has been observed in stores. The big question for the autumn is whether the price competition can renew itself. According to the data compiled by the government’s price watcher, at the beginning of July, the price of the most expensive consumer basket was over 74,000 forints, but by mid-August, it had dropped to around 63,000 forints.

The price watcher calculates based on the lowest unit price products available at various retailers in all categories. These products make up an imaginary consumer basket. The most noticeable impact of the price watcher is on the change in the average basket value, resulting in a reduction of approximately 15 percent over a month and a half.

This significant change most likely wouldn’t have occurred without the launch of the price watcher portal. Although there were days during the observation period when the daily basket price was higher, the trend was clearly downward. The price of the most expensive basket (SPAR) reached 78,000 forints on July 9th, while the cheapest basket (Tesco) was priced at 56,000 forints on July 1st.

The most significant change felt through the price watcher isn’t in the fluctuations between the two extremes, but in the evolution of the average basket value. The decrease in prices demonstrates that the role and impact of the price watcher have had a strong influence on price competition and consumer benefits.