We looked at the prices of 300 products last week and now, and found the unexpected winners of the margin stop
9 Articles
9 Articles
We first tried negotiations, but they did not lead to any results, so we were forced to intervene. The retailer can add a maximum of 10 percent to the purchase price. This resulted in an immediate price reduction in 30 basic food categories, but this means around 760 products, said Prime Minister Viktor Orbán.
We checked how much cheaper the dairy and meat products of Lidl, Aldi, Spar, Tesco and Penny will be with the introduction of the margin cap. Some products have seen their prices drop by a brutal 59 percent, but there are also products that have actually become more expensive despite the margin cap.
The regulation of merchant margins in Hungary has brought about a 60 percent reduction in the price of some foods. In an effort to limit the effects of inflation, the government of Prime Minister Viktor Orbán has begun regulating merchant margins on 30 basic foods, which are now not allowed to exceed 10 percent.
The management of Spar Hungary sent a letter to its employees regarding the margin freeze. According to the letter obtained by our newspaper, the measure will result in a monthly loss of 1.5 billion forints for the company and they will also change their commercial practices. If this is not enough, they will be forced to take further steps.
For months now, it has been apparent that food prices in our country are soaring, and we also learned that negotiations between the government and food companies began weeks before the margin freeze. Is the margin freeze a fight against greed-driven inflation, or a communication bomb dropped on Viktor Orbán? We looked at the background to the inflation.
Although the Hungarian government has praised the results of its measure to cap profit margins on food products, there are aspects that suggest that...
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