The Hungarian Competition Authority (GVH) has reported a decrease in prices of several essential food products due to the introduction of a price margin cap. This follows previous findings in 2023 that indicated certain food retailers had raised prices excessively, contributing to inflation driven by profit motives.

In the first half of 2023, the GVH conducted several expedited sectoral investigations, revealing that some retailers had increased prices of basic food items, such as dairy products and non-perishable goods, significantly. This increase in prices was linked to a notable rise in retailer profits in 2022, which played a role in the substantial food inflation observed.

GVH President Csaba Balázs Rigó proposed the establishment of an online price monitoring system to the government, based on the findings from these investigations and international examples. This system, which will soon expand to include additional product categories, is designed to enhance price transparency in the food sector.

The online price monitoring system, accessible at www.arfigyelo.gvh.hu, tracks prices of over 2000 different food products across more than 1200 stores from six major retail chains. It provides real-time updates on price changes, including recent decreases in essential items like dairy and eggs due to the newly implemented price margin cap.

President Rigó emphasized the GVH's commitment to supporting initiatives aimed at reducing food prices, stating that the authority stands ready to intervene and initiate new investigations if necessary. He believes that the temporary application of the price margin cap serves the interests of Hungarian citizens, particularly families and pensioners.

The GVH is dedicated to protecting Hungarian consumers while also considering the interests of domestic businesses. It continuously monitors market processes and the behavior of market players within various product chains to prevent any anti-competitive collaborations that could negatively impact consumer welfare.