Published: 2023-06-27
The Hungarian government is phasing out the food price freeze as inflation is expected to fall to 15% by August 2021. To ensure that food prices remain stable, the government has introduced an online price monitoring system. This article explains how the system will function and what products will be covered.
The Online Price Monitoring System
The online price monitoring system will track the price of various goods, such as milk, yogurt, cheese, meat, fruits, and vegetables. For each product category, the system will record the gross selling price, the name of the product group, and other identification data. Additionally, the system will require daily updates of the current unit and the selling price and the previous prices of products to assist customers in comparing prices before buying. The new system is expected to reduce the opportunity for traders to manipulate prices.
In-Store Promotions
The government has mandated that in-store promotions of various products increase from 10% to 15% to coincide with the elimination of the food price caps. Products that previously had a regulated price will be subject to promotional prices based on the gross purchase price to prevent significant price increases once the price cap is removed.
Product Coverage
The online price monitoring system covers a wide range of food products, from milk and cheese to bread and sugar. The system implies that retailers must report their selling prices daily and provide the system with the product’s gross selling price, unit price, and packet price where necessary.
The Trader's Obligations
Each of the trader's outlets is required to provide product data for each product category within the outlet. The trader must indicate each product's current daily price by specifying the unit price, selling price, and the previous day's price. The aim of this requirement is to reduce market manipulation by traders, thus maintaining a fair competition environment.
Conclusion
The Hungarian government has introduced an online price monitoring system to track the price of various goods as it phases out food price caps, aiming to combat inflation. This new system will keep track of prices to ensure that food prices remain the same, without allowing price hikes. Retailers will be required to provide the system with specific product information, and the data must be submitted daily. The online price monitoring system is set to promote a competitive market environment in the Hungarian retail sector.
Questions & Answers
What is the online price monitoring system in Hungary? The online price monitoring system is a tool introduced by the Hungarian government to monitor prices of certain food products.
When was the online price monitoring system introduced in Hungary? The online price monitoring system was introduced on 1 July in Hungary.
What is the purpose of the online price monitoring system in Hungary? The purpose of the online price monitoring system is to combat inflation and ensure that food prices remain stable.
What food products are covered by the online price monitoring system in Hungary? Various types of milk, sour cream (tejföl), yogurt, cottage cheese (túró), cheese, margarine, butter, egg, pork leg, whole chicken, chicken breast fillet, chicken leg, turkey breast fillet, lard, sausage, salami, various cold cuts, various fruits and vegetables, types of bread, types of pasta, wheat flour, sugar, cooking oil are covered by the online price monitoring system in Hungary.
Who is obliged to provide data for the price monitoring system in Hungary? Traders are obliged to provide data for each product category within each of their outlets for each product which they market and which corresponds to the description and presentation set out in the Annex.
What are the obligations of traders in relation to the price monitoring system in Hungary? Traders are required to provide the daily price of the product by indicating the unit price and the price by type of selling price for the product. In addition to the daily price, they must indicate the previous price and unit price of the product.
Will food prices go up after the food price caps are lifted in Hungary? The Hungarian government expects that the online price monitoring system and mandatory shop promotions will ensure that food prices will not go up even after the food price caps are lifted from 1 August.
