Data from the first week of the price margin cap clearly show a shift in the food market: while price-controlled products have become significantly cheaper, the prices of other food items have started to rise. According to a survey by portfolio.hu, out of 2,547 examined products, prices decreased for 1,044 items.
The biggest price increases affected pasta, meat products, and fruits. Some items saw a price hike of over 40%—for example, Pick Original Winter Salami rose from 6,999 HUF to 9,889 HUF in Tesco and Spar stores, while Gyermelyi Spaghetti went from 599 HUF to 849 HUF. Similar sharp price increases were observed for sausages, cucumbers, and frozen French fries.
One reason behind this market shift could be price compensation for products affected by the margin cap. The analysis suggests that major retail chains are balancing price reductions by raising prices on other items. The phenomenon of cross-pricing appeared within the first week, as certain products saw identical price increases across multiple retail chains after the introduction of regulated prices.
The government-imposed margin cap applies to 30 essential food products, limiting their profit margin to the January 2025 level, with a maximum cap of 10%. The regulation is expected to remain in effect until May 31.
(Debreceni Nap)
