BUDAPEST, Nov. 11 (Xinhua) -- The Hungarian government announced on Tuesday that it will extend the retail profit margin cap until Feb. 28, 2026, and broaden its scope to include 14 additional food items.
This move came after the release of the latest inflation data by the Hungarian Central Statistical Office (KSH), which said consumer prices in October were 4.3 percent higher than a year earlier, with food prices rising 3.9 percent year on year.
According to the Ministry for National Economy, the decision aims to counter "unjustified price increases" and help households cope with the rising cost of living.
The profit margin cap, first introduced in March 2025 to limit retailers' profit margins to 10 percent on selected basic food and household items, has since been expanded to cover more than 1,000 products across 30 categories, including eggs, butter, dairy goods, and cleaning supplies.
From Dec. 1, the list will be extended to include pork liver pate, processed cheese, apples, pears, and plums.
The ministry said the measure has already produced tangible results, noting that average prices in drugstores have fallen by 27.6 percent and in grocery stores by 20 percent since its implementation.
"With the economy having stagnated for three years, inflation above 4 percent remains relatively high - especially considering that a significant portion of the consumer basket is subject to some form of administrative price control," said Erste Bank analyst Janos Nagy.
He expected a full-year average inflation to be around 4.5 percent, and warned of stagflation risks. "Economic growth is stagnating and inflation expectations among consumers remain high," he said. ■
