BUDAPEST, May 8 (Xinhua) -- The Hungarian government on Thursday announced an extension of its anti-inflation measures, expanding profit margin caps to cover more than 1,000 household products across 30 categories, in addition to previously targeted essential food items.
Speaking at a weekly press briefing following Wednesday's cabinet meeting, Gergely Gulyas, minister of the Prime Minister's Office, said the government is satisfied with the outcomes of the current food price cap policy. The measure, introduced in mid-March, limits retail profit margins to 10 percent on 30 basic food items, including staples such as eggs, butter, and sour cream.
The cap - originally set to expire at the end of May - was introduced to help curb Hungary's stubbornly high inflation. In March, the country's inflation rate stood at 4.7 percent, with food prices up 7 percent year-on-year.
The government said that unjustified price hikes are unacceptable.
Under the expanded regulation, which takes effect on May 19, retailers will be restricted to a maximum 15 percent profit margin on a wide range of household goods. These include everyday items such as soap, toothpaste, shampoo, deodorants, razors, baby diapers, toilet paper, detergents, and disinfectants. Authorities expect the new measures to yield average price reductions exceeding 10 percent.
The updated regulation applies exclusively to dedicated drugstore chains, such as DM, Rossmann, and Muller, which collectively account for over 40 percent of Hungary's household goods market. Mixed retail outlets selling both food and non-food items will be exempt.
The profit margin caps will remain in place until the end of August. ■