GFM: the mandatory promotions work and have had an effect

By: Trademagazin Date: 2023. 06. 28. 12:43

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In order to reduce the increased food prices, on June 1, 2023, mandatory sales in retail stores began; the measure works well and has had its effect, the store chains are now bidding on each other to announce the discounts – announced the Ministry of Economic Development (GFM) on Wednesday.

The mandatory campaign thus effectively contributes to increasing market competition, reducing inflation, and protecting families – the ministry emphasized.

Sanctioned inflation peaked in January this year thanks to the government’s previous measures, in May it decreased “visiblely” for the first time since November 2020, and in June it may even drop below 20 percent. Thanks to the new government measures, this trend will continue to strengthen, there is every chance that inflation will drop to single digits before the end of the year, GFM wrote in its announcement.

All of this made it possible for the government to phase out the institution of the food price stop, which has been in operation for about a year and a half, with the phase-out taking place on the first of August. Basic foodstuffs will therefore continue to be available at favorable prices.

At the same time, in order to further increase price competition and protect families, the government has also decided that the level of the mandatory promotion will be increased from at least 10 percent to at least 15 percent of the currently valid – compared to the lowest price applied in the 30 days prior to the promotion – for all 20 product groups as of August 1st case – recalled the ministry.