Economist László Miklós: it is unlikely that the government will put an end to price cap
László Parragh, the president of MKIK, previously said in Egyenes Beszéd: he is negotiating with the government about the possibility of introducing a price cap. According to economist László Miklós, this is unlikely, while Levente Tóth, Bank360.hu analyst, expects the government to prepare some kind of change, but it is not known what.
László Miklós said in the ATV Start program: the government also knew that the price cap had no effect on the price increase, they knew that the traders would collect the lost amount elsewhere. This measure was only good for getting votes, with which they targeted the poorer class. With the gasoline price freeze, they could not transfer this drop to another product, the price freeze there really moderated inflation.
The official price of fuel, on the other hand, caused a budget loss, because the extra profit arising from the difference between the quotation of Russian and Brent oil was indirectly taken from MOL by the state, by returning half of it through the official price, and taking the other half with the extra profit tax.
According to Levente Tóth, when the food price cap was introduced, it had a short-term inflation-reducing effect. When a price cap can make sense is when there is a sudden fluctuation in prices, the problem is that when it was introduced, it was introduced as a temporary measure, but since then it has been continuously extended, so the positive effect no longer applies, as the market adjusts for this.
Related news
Csökkentette az élelmiszerárakat az árrésstop és az online Árfigyelő bővítése
2025 áprilisában csökkent az infláció és az élelmiszerárak növekedési üteme…
Read more >April inflation was higher than expected
In April, annual inflation was 4.2 percent, and prices rose…
Read more >Is life cheaper beyond Komárom? – Hungarian shoppers flock to Slovakia to save money
According to a recent investigation by Mfor.hu, shoppers from Hungary…
Read more >Related news
GKI Analysis: Without EU funds, the domestic economy would just flounder
On May 1, Hungary marks the 21st anniversary of joining…
Read more >Csökkentette az élelmiszerárakat az árrésstop és az online Árfigyelő bővítése
2025 áprilisában csökkent az infláció és az élelmiszerárak növekedési üteme…
Read more >NGM: we always take action against unjustified price increases, inflation may decrease further in the coming months
The government is successfully fighting price increases. In April, inflation…
Read more >