Hungarian National Trade Associationalso made a statement

By: Trademagazin Date: 2023. 04. 24. 14:49

The Hungarian National Trade Association opines that the mandatory promotions can’t solve the problems.

In contrast to price caps, these promotions represent a huge administrative burden for stores and distort the market. According to the general secretary, Katalin Neubauer, if the action is not organized and there is no cooperation between stores to increase stocks, it will only result in a reduction of prices, which will not solve inflation.

The official price did not have a positive effect on inflation in the last 15 months, the association believes. The intervention of state regulation in prices does not bring positive results from the point of view of the market economy, so they recommend that everything return to the old way of life. The trade covers costs through the margin, and if the prices are at a third price, the business becomes unviable.

The government extended the price caps until June 30 and made weekly promotions mandatory, but according to the association, these measures also do not solve the problem of inflation.