Food and Petrol Price Cap Periods Extended

The Hungarian government has decided to extend the gasoline and food price freeze, the Minister heading the Prime Minister's Office, Gergely announced at the Government Info in Budapest on Saturday afternoon.

According to the minister, the war and the sanctions in response response had led to a brutal rise in energy prices, which in turn had caused a general rise in prices, inflation and an increase in the price of goods, especially food. As a result, the price of petrol and diesel has also spiralled out of control and interest rates have risen sharply in recent months.

The reason given for maintaining the price freezes is the exceptional situation: there will still be basic foodstuffs available at pre-crisis prices. In his opinion, it is the biggest family support program in Europe.

At the same time, analysts warn that the maintenance of the price caps continues to distort prices and results in inflation as shops increase the prices of other food items to make up for their losses that result from having to sell goods at a price that is lower than the one they have to pay for these items to producers or wholesalers.