Balázs Csaba Rigó: As soon as several companies saw the competition’s lower prices, they reacted immediately the next day and lowered their own prices as well

By: Trademagazin Date: 2023. 07. 21. 15:16

Enormous interest surrounds the online price monitoring system that launched on July 1st. This interest is not only from consumers but also from retail chains that have prepared for the system’s launch with promotions and discounts, as stated by Rigó Csaba Balázs, the President of the Hungarian Competition Authority (GVH), in an interview with Napi.hu. The purpose of the price monitoring system is to curb inflation, and the initial experiences have been highly positive. Within the first two weeks of operation, over half a million unique visitors made nearly 40 million interactions on the website, reflecting a remarkably high level of interest. This indicates that the price monitoring system is providing a much-needed service for the Hungarian people.

The impact of the price monitoring system on competition appears to be already evident in the short term. Retail chains have shifted from weekly to daily pricing, reacting to their competitors’ lower prices listed on the monitoring system. This increased competition has led to price reductions in various product categories, such as eggs, bread, and pork. It can be concluded that the price monitoring system has already contributed to curbing inflation in just a few weeks by allowing consumers to compare prices and fostering competition among retailers.

The development of the price monitoring system involved collaboration with retail chains, as mandated by the government. Professional associations representing merchants also participated, ensuring a smooth launch without any issues on July 1st. Moreover, the retailers responded promptly to the system by introducing various promotions and discounts in line with its commencement. According to one retail chain leader, the price monitoring system has intensified the competition significantly.

Regarding the system’s future, the authorities plan to expand the range of tracked products based on consumer demands and feedback. Additional features, such as a customizable shopping list and calculator, are envisioned to further assist consumers in price comparisons and selecting the best offers. The ultimate goal is to lower or stabilize consumer costs and subsequently curtail inflation by promoting competition between producers and food retailers.

While the primary objective of the price monitoring system is to enhance competition, it also indirectly assists the GVH in identifying unfair market practices that could disadvantage Hungarian producers. The system’s development involved close cooperation between the GVH and relevant ministries, such as the Ministry of Economic Development. The data provided by the system aids in maintaining a balance between suppliers and retailers and ultimately serves the interests of all market participants.

In conclusion, the introduction of the price monitoring system has garnered widespread interest, and its initial impact on promoting competition and reducing consumer prices is already evident. As the system evolves and expands its features, it is expected to have a positive and lasting effect on curbing inflation and enhancing the shopping experience for Hungarian consumers.