The price of certain products has decreased by a third due to the margin freeze

By: Trademagazin Date: 2025. 05. 22. 12:13

Bankmonitor experts conducted on-site research to assess how prices of drugstore products affected by the new margin cap regulation have changed. They also estimated the potential impact of observed price reductions on overall inflation.

The analysts visited Rossmann and DM stores in person, collecting detailed price data both before and after the introduction of the margin cap. Products were selected through random sampling, covering low-, mid-, and high-price categories. However, the survey is not representative, as data was collected from only one location per retailer.

Based on pre- and post-regulation comparisons, significant price reductions were observed across various product categories after the margin cap was introduced. The chart shows that the price of razor blade refills dropped the most—by 67.79%—followed by toilet paper (–35.71%), soap (–23.18%), and diapers (–3.07%). These findings clearly indicate that the regulation has had a measurable impact on consumer prices.

This impact won’t show up in May inflation figures

Since the Hungarian Central Statistical Office (KSH) collects price data during the first 20 days of the month, it is likely that the effects of the margin cap will not yet appear in the May inflation report. However, the June inflation data is expected to reflect the results of the policy.

The measure is not negligible in terms of published headline inflation either, as approximately 2.79% of the consumer price basket is affected by the current drugstore margin cap. According to Bankmonitor estimates, if prices in this product category fall by 20%, month-over-month inflation could be reduced by more than half a percentage point.