Hungary to lift price caps on essential food items

Budapest: The Hungarian government has announced the termination of price caps on essential food items, effectively ending the measure aimed at curbing inflation.

Speaking from Budapest at a regular press briefing, Gergely Gulyas, minister in charge of the Prime Minister's Office, revealed that the food cap measure will remain until August 1, after which it will be discontinued, reports 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 per cent.

He expressed confidence in the continued acceleration of this downward trend 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.

The government had initially announced the freezing of prices for items such as granulated sugar, wheat flour, sunflower oil, pork thighs, chicken breast, and 2.8 per cent milk in January last year, as a measure to address inflation concerns.

In November 2022, the list of products subject to price caps was expanded to include eggs and potatoes.

The government aims to achieve single-digit inflation by the end of this year as part of its broader objectives.