GVH: margin reduction reduced prices, OKSZ disputes the effect

In its statement, the GVH rejected criticism from the National Trade Association (OKSZ), which argued that inflation is not caused by retail margins and that the regulation severely harms stores. According to the competition authority, the OKSZ drew unfounded conclusions based on draft reports from ongoing investigations.

The government introduced the margin cap in the spring, initially applying it to thirty basic food products, later extending it to household goods as well, covering a total of thirty product categories. Retailers may apply a maximum margin of 10 percent on these products. The measure was first extended until the end of August, and then the government decided once again to prolong the deadline.

However, the latest inflation data show that the pace of price increases has remained higher than expected. Analysts say this means that a cut in the base interest rate is unlikely in the near future, indicating that multiple factors besides the margin cap are influencing consumer prices.