Published: December 05 2023
Hungary implemented a unique price monitoring system in July to combat high inflation. While experts believe it had little impact on reducing prices, inflation has eased in recent months. The system compares the prices of 60 food products in 1,200 shops, but the government plans to expand it further.
Record-high inflation in Hungary
Hungary experienced Europe's highest inflation in recent months, with food prices increasing by more than 50%. Some specific food products saw inflation rates of up to 100%. To address this issue, the government introduced a price monitoring app that allows citizens to compare food prices among five retail chains: Lidl, Tesco, Spar, Auchan, Aldi, and Penny.
Expansion of the price monitoring system
In 2024, the Hungarian government plans to modify the price monitoring system by including an additional 18 food products. The expanded list will include gluten-free and dairy-free products, as well as duck and beef. This will bring the total number of monitored food products to 80.
Government measures to reduce inflation
The Hungarian government claims that the price monitoring system, along with a compulsory price reduction program implemented in June, has contributed to reducing inflation. They also attribute the decrease in inflation to external factors such as the ongoing war in Ukraine, sanctions against Russia by Brussels, and multinational company speculation.
Success of the price monitoring system
According to the government, the price monitoring website has garnered 1.4 million viewers and 850 thousand searches in the past five months. They claim to have reduced inflation to single digits by October.
While Hungary's price monitoring system may have had limited impact on reducing inflation, it has helped ease the financial strain on shoppers by providing price comparisons for food products. The government plans to expand the system further by including additional food products to monitor.
Questions & Answers
=== What is Hungary's price monitoring system? Hungary's price monitoring system is a unique system introduced by the government to track and compare the prices of food products in different shops. It aims to combat high inflation and provide financial relief to shoppers.
When did Hungary's price monitoring system start? Hungary's price monitoring system started in July of a certain year (not mentioned in the source article).
What did the price monitoring system track? The price monitoring system tracked the prices of 60 food products in 1,200 shops. Initially, it focused on five retail chains: Lidl, Tesco, Spar, Auchan, Aldi, and Penny.
Did the price monitoring system help decrease inflation? While the price monitoring system is believed to have contributed little to the decrease in price rise, inflation has eased significantly in Hungary in recent months. Experts think that the decrease would have occurred even without the government's monitoring system.
How many food products will be included in Hungary's price monitoring system in 2024? In 2024, an additional 18 food products will be included in Hungary's price monitoring system. This will bring the total number of monitored food products to 80.
What are some of the food products that will be included in the price monitoring system in 2024? Among others, the list of food products to be included in the price monitoring system in 2024 will comprise gluten-free and dairy-free products, as well as duck and beef.
What factors have contributed to high inflation in Hungary? High inflation in Hungary has been attributed to the ongoing war in Ukraine, the Brussels sanctions against Russia, and the speculation of multinational companies.
Did the government introduce any other measures to reduce inflation in Hungary? Yes, in June, the government introduced a compulsory price reduction system in addition to the price monitoring system. The details of this program were not provided in the source article.
How much inflation has Hungary managed to reduce by October? The government claims to have reduced inflation to one digit by October. The exact percentage of reduction is not mentioned.