NGM: the government has suppressed inflation, the mandatory promotions will end on July 1, 2024

By: Trademagazin Date: 2024. 06. 25. 13:02

With the mandatory sales – thanks to which families were able to get basic food such as bread, meat, milk or various vegetables at a cheaper price – the government broke down and then reduced wartime inflation to a low level. The measure has achieved its goal, so it will be phased out from July 1, but the government will continue to operate the online price monitoring system in order to maintain and stimulate retail price competition, the Ministry of National Economy (NGM) announced in its statement on Tuesday.

The mandatory action system was introduced by the government as of June 1, 2023, on the recommendation of the Ministry of National Economy, in order to overcome the inflationary shock caused by the war and the failed sanctions, and to protect families and pensioners.

In August 2023, the government increased the extent of the mandatory promotions – for traders with a turnover of over HUF 1 billion – by one and a half times, and significantly expanded the range of affected products. Pursuant to the provision, in the case of 20 product groups, the rate of mandatory promotion has increased from 10 percent to at least 15 percent, compared to the lowest price applied in the 30 days prior to the promotion. In addition, the mandatory promotional rules were extended to the previous 8 price-stop product types, which had to be offered at purchase price, and for at least 2 of these product types on a weekly basis, all products had to be offered at least 15 percent cheaper compared to the purchase price – mentioned the NGM.
Thanks to the measure, families were able to buy products from basic food categories, such as poultry meat, at a significantly lower price; milk, cream and substitutes; cheese; bread; pastries; dry pasta, rice; fresh fruit; fresh vegetables.