After the first of July, a brand-new government system in Hungary will have a significant impact on the way consumers do their shopping.
An online pricing monitoring system was established by the government in March of this year as part of an effort to combat rising inflation. Yesterday, the government issued a decree outlining the plan in full. At 25.6%, Hungary’s inflation rate remains the highest in the European Union.
After Hungary, we find Latvia, whose rate is “only” 17.2 percent lower. In order to combat inflation, the government reportedly formed a separate working group to set up an online pricing monitoring system, as reported by telex.hu. The program will launch on July 1 in Hungary, and it will focus on large supermarket chains including Aldi, Lidl, Spar, and Penny.
Supermarkets with a net income of more than HUF 100 billion (about EUR 270 million) in 2022 will have to submit annual data reports under the new legislation. Following a government order, supermarkets will have their prices tracked online, both on a daily basis and in relation to customers’ loyalty programs.
To begin, 60 key product categories’ pricing will be included in the database. Meat, white bread, ESL milk, cheese, apples, sausages, margarine, butter, and pasta are all on the menu. In spite of the fact that the product’s expiration date is shorter than average, that doesn’t mean you should discount it.
In the future of Hungarian retail, price comparison websites will come first. By the end of the day before, each business will have uploaded all applicable prices. In addition, until August of next year, retailers will be required to disclose target product prices from a year ago.
Additionally, businesses that aren’t required to participate in the program can voluntarily start doing so. According to telex.hu, the database will be managed by the Hungarian Competition Authority. The government’s goal is to give every client access to a central database where they can easily and openly compare rates.
Therefore, the cabinet is hoping that by disclosing how shops set their prices, they may discourage overcharging. They also hope that this will increase market competition. This could lead to lower prices in Hungary. Inflation fell sharply over the summer, according to official government figures.
By year’s end, they only use a single-digit interest rate in their calculations. According to Telex, Hungarian inflation hit 25.2% in March of this year. When compared to March of the previous year, this rate was 42.6% in relation to food. Domestic energy costs, meanwhile, increased by 43.1%.