OKSZ: Retail is not responsible for rising prices

Nearly half of retail sales were realized in food and food-related mixed stores, a warning sign that the turnover growth of typically smaller specialty stores is lagging behind that of larger stores, which may also be a negative consequence of the margin freeze.

“Retail is not responsible for rising prices. According to the Hungarian Competition Authority’s investigations into two product groups (milk, eggs), retail margins did not play a role in the price increases at the beginning of the year. On the other hand, food inflation is due to rising overhead costs (electricity, gas, water, sewerage charges), as well as supplier prices due to product fees and labor costs. A representative survey also confirms that 75 percent of the population perceives serious inflation in the food sector as well, meaning that the margin freeze is not achieving the effect that the government would have expected.

Meanwhile, new and new burdens are being placed on retail. In addition to the margin freeze, such measures include the special retail tax that actually increases the VAT of chain stores to 31.5 percent, and most recently, the reduction of waste management fees paid by Mohu. However, increasing efficiency and thus keeping prices under control is also hindered by the planned extension of the mall freeze to the seller’s or leased commercial premises. real estate.

“All of these steps make retail operations more expensive, drain resources from investments, make it impossible to improve efficiency, and reduce the number and extent of promotions launched by retail, which would generally mean serious help for the most disadvantaged customers,” says Tamás Kozák.