The government has extended the margin freeze

The regulation was first introduced in March 2025, when the retailer’s margin was capped at 10 percent for thirty basic foodstuffs. The measure, which was later extended, currently affects a total of 30 product categories, including several thousand products, including household goods. The government previously extended the provision until August 31 at the end of May, and now a new decision has been made to continue it a week before the deadline.

According to previous information from the Prime Minister’s Office, compliance with the margin freeze is regularly monitored, and the majority of stores meet the requirements. Retailers use the margin to cover their operating costs – such as wages, utilities and maintenance – and make a profit through it, but the level of this has been limited by the government in a decree.

The latest inflation data from the Central Statistical Office show that the rate of price increase has remained higher than expected, which is why analysts say the central bank cannot cut the base rate for now. Gábor Regős, chief economist at Gránit Alapkezelő, believes that the margin stop is expected to be maintained this year, as its elimination would increase inflation by about 1.5 percent. Péter Virovácz, chief economist at ING Bank, however, drew attention to the fact that the impact of the measures was partly offset by external factors, such as supply shocks due to animal epidemics.

The further fate of the measure is not yet known, but the government has indicated that its goal remains to reduce the rise in food prices.