Hungarian Ministry Proposes a Price Ceiling on Food

By: The Quinnipiac University Economics Research Team, Nicholas Ciampanelli

In response to inflating food prices, the Ministry of Agriculture is exploring the implementation of a price ceiling for foodstuffs. This ceiling would set prices to those of October 2021, thus lowering current food prices. This action follows previous cuts to the value-added tax (VAT) made by the Hungarian Parliament, reducing said tax to five-percent (5%) for basic food items. If this price ceiling is implemented, food retailers are expected to protest given their view that the policy will slash their net profits. Lastly, as currently stated, the policy will be effective for three (3) months unless prolonged by Parliament.


This article is based on: https://hungarymatters.hu/2022/01/17/agriculture-minister-hails-food-price-curbs/

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