OKSZ: Inflation no longer justifies maintaining the margin freeze

According to the OKSZ, retail sales are rising more slowly than expected, and household consumption is particularly subdued, so there is no sign that excessive demand is driving inflation. Although food prices have not changed overall compared to July, some products – such as cold cuts, butter or poultry – have become more expensive by around 1 percent, while other products, such as potatoes, flour, pork or eggs, have become cheaper.

The association believes that the source of the price increases is to be found on the side of producers and processors. Retail chains are facing continuous price increase demands, which are difficult to manage in the context of the margin freeze. According to the OKSZ, costs are also continuously increased by state-influenced factors such as utilities, product fees and the minimum wage.

The association drew attention to the fact that the six largest food chains were already making a loss at a consolidated level in 2024, even before the introduction of the margin freeze, and the profits of domestic chains also decreased compared to 2023. “The government imposed the margin freeze on this solid foundation, which is pushing the sector into further losses. Under such circumstances, meaningful price competition cannot be pursued, and large-scale campaigns cannot be launched,” the statement says.

According to the OKSZ, the margin freeze is particularly harmful to smaller stores: the measure accelerates the closure of convenience stores, which worsens the food supply of smaller settlements. There are already about 400 settlements without shops, and in hundreds more there is no competition between traders, which is detrimental to the population. The association has already indicated that the margin freeze could lead to layoffs and store closures.