BUDAPEST, July 1 (Xinhua) -- In a new effort to curb inflation and protect consumers from unjustified price increases, the Hungarian government has launched a voluntary price cap scheme targeting pharmaceutical products.
Effective Tuesday, the measure applies to 34 high-turnover over-the-counter (OTC) medicines and 10 prescription-only drugs that are not covered by state subsidies, according to the Ministry for National Economy.
Drug manufacturers, wholesalers, and pharmacies have agreed to roll back the prices of these medicines to their levels as of Dec. 31, 2024. The price cap will remain in effect through the end of June 2026, the ministry said.
The move follows a series of consultations with key industry groups, including the Association of Innovative Pharmaceutical Manufacturers (AIPM) and the Hungarian Pharmaceutical Manufacturers Association (MAGYOSZ).
"The government consistently takes action against unjustified price increases in the interest of the population, especially families and pensioners," the ministry said in a statement. "It welcomes that, following banks, telecommunications companies, and insurers, participants in the pharmaceutical sector are also voluntarily limiting prices."
This initiative is part of a broader anti-inflation strategy that includes existing profit margin caps on food and household products. In May, the government extended a 10 percent margin cap on 30 basic food items until Aug. 31 and expanded a similar cap to more than 1,000 household goods sold in designated retail chains.
Although Hungary's headline inflation fell to 4.2 percent in April, it rose slightly to 4.4 percent in May, prompting continued government intervention. ■