The Hungarian government has made an official announcement regarding the lifting of price caps on essential food items, effectively bringing an end to the measure that was implemented to address inflation.
During a regular press briefing in Budapest, Gergely Gulyas, the minister in charge of the Prime Minister’s Office, announced that the measure of capping food prices will continue until August 1. However, following that date, the measure will be completely discontinued, as reported by Xinhua news agency.
Justifying the decision, Gulyas cited current forecasts indicating a significant decrease in inflation by August, with rates expected to hover around 15 percent.
Expressing optimism, he conveyed confidence in the ongoing acceleration of this downward trend, anticipating its continuation throughout the autumn months.
This recent development follows Hungary’s decision on April 20 to extend price controls on essential food products until June 30 as part of its efforts to combat inflation and mitigate the impact of the escalating cost of living.
In January of the previous year, the government had initially declared a price freeze on various items, including granulated sugar, wheat flour, sunflower oil, pork thighs, chicken breast, and 2.8 percent milk. This measure was implemented in response to concerns surrounding inflation.
In November 2022, the range of products subjected to price caps was expanded to encompass eggs and potatoes.
As part of its broader objectives, the government aims to accomplish single-digit inflation by the end of this year.
