From July 1st, mandatory store discounts will cease, as announced by the Ministry of National Economy, according to hvg.hu. The decision, justified by the ministry led by Márton Nagy, cites a reduction in inflation. The ministry’s statement, published by MTI, claims that the mandatory discount system, along with the online price monitoring, effectively contributed to reducing inflation to single digits and further lowering it to around 4%. This system also spurred fierce competition in retail, resulting in annual food inflation dropping to 1% in recent months and even a decrease in food prices in May compared to the previous month.
The government introduced mandatory discounts on June 1st last year, requiring stores to offer weekly discounts on at least one product from various categories as per the 162/2023 (V. 5.) government decree.
Mandatory discounts affected twenty product categories, and stores with revenue exceeding one billion forints had to offer discounts on one freely chosen product from each category, ensuring the necessary quantity based on the average daily sales of 2022. Discounted items include poultry, milk and substitutes, cheese, bread, pastries, dry pasta, rice, and fresh fruits and vegetables.
The discount rule mandated that stores sell these products at least 10% cheaper than the lowest gross price offered by the store in the 30 days preceding the mandatory discount period.
Despite this, the Central Statistical Office’s latest quick report on June 6 indicated a decrease in retail sales in April, showing a reduction in consumer purchases.
(telex.hu)
