Gergely Suppan: prices have decreased by an average of 16 percent so far with the margin freeze

He added that the price of dairy products fell dramatically due to the margin cap, decreasing by about half, and in some cases the decrease exceeded 60 percent. There was also a significant decrease in some processed meat products. More than a thousand products from 30 product groups were affected by the profit cap introduced on Monday. The decrease in prices was observed in the case of 760 products – he noted.

He indicated that the authorities have been strictly monitoring price developments and compliance with the margin cap in stores since the beginning, until May 31. If these price levels remain, no further steps are needed – Gergely Suppan opined.

“It will clearly pull inflation down” – he said, adding: households’ “inflationary feeling” is determined mainly by food prices, if a downturn occurs, this can also significantly reduce the inflationary feeling, improve consumer sentiment, and support consumption. The margin stop alone can reduce inflation by almost one percentage point, but at the same time it will also have a positive effect on the decrease in fuel prices – he said.

He mentioned that the German parliament’s measure on the abolition of the debt brake will have direct positive effects, since Germany is an important export partner for Hungary, and the “upturn” of the German economy will also contribute to the revival of the Hungarian economy.