GKI CEO: the price cap was not a good idea

Price caps drive the inflation higher

“Price caps cannot stop price increases, in fact, they result in higher inflation in the long term”

– pointed out economist Ákos Péter Bod, who says that prices in Hungary are growing twice as fast as the EU average.

“If the price of a given product is fixed, then in the statistics it gets a zero multiplier with the weight of that product, so it would actually and physically reduce the price index if the traders do not transfer this to the price of other products, as has been the case so far”

said László Molnár, CEO of GKI, in an interview with ATV.

In most countries, inflation was allowed to affect the economy, while the economic actors received support, reports ATV. In Italy and France, for example, the reduction of fuel taxes was extended, in Italy bread and pasta became VAT-free, and in several EU states they helped the population with one-off social assistance.