Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure HU-2023-22/3222 – Updated – measures in Hungary
Country | Hungary , applies nationwide |
Time period | Temporary, 01 June 2023 – 30 June 2024 |
Context | War in Ukraine, Cost of Living Crisis |
Type | Legislations or other statutory regulations |
Category |
Promoting the economic, labour market and social recovery into a green future
– Support for other basic items (e.g., food, housing, public transport, medicines) |
Author | Nóra Krokovay (KOPINT-Tárki) and Eurofound |
Measure added | 07 June 2023 (updated 25 April 2024) |
Government decree 162/2023 regulate special offers for food items that last for a week, from Thursday to the following Wednesday. The government expects the scheme to slow down inflation by increasing competition and stopping 'speculation'.
The Competition Office is setting up an online price-monitoring system from 1 July 2023, where shops with revenue of HUF 100 billion (€263.2 million) or more are expected to enter daily prices. Fines for breaking the rules range from HUF 500,000 to HUF 2 million and shops that disobey may be shut down for a length ranging from one day to 6 months.
Shops categorised under NACE 47.11 with revenue exceeding HUF 1 billion (€2.63 million) in 2021 must organise special offers of at least 10% off the reference price. The reference price is the lowest gross price of an item in the 30 days prior to the first day of the offer. The offers have to be for one of the 20 predetermined food categories (poultry; pork, beef, veal, other meat; milk, cream and substitutes; cheese; bread; pastry; dry pasta, rice and other cereals; fresh fruit; fresh vegetables; ready meals, spices, condiments).
The law applies to online grocery shops, as well as in-person grocery shops.
On three occasions shops may defer from this week-long period, and make the offer last two weeks instead. Shops must notify the relevant ministry two days before the offer starts and they must make sure the item on offer is stocked at least to the average daily amount sold in 2022. The offers cannot include food items already sold at a capped price due to another scheme (See related case Price cap on basic food items ). Item categories in which the store sells less than five items are exempt from the special offer scheme.
The following updates to this measure have been made after it came into effect.
09 January 2024 |
Under govt decree 1/2024 retailers are obligated to put up warning signs next to products whose size has shrunk in a way that raises the product’s unit price. The measure is in place until the end of the state of war emergency (25 May 2024). |
23 November 2023 |
With a new amendment of govt decree 162/2023 the measure was extended until 30 June 2024. |
26 September 2023 |
With an amendment of govt decree 162/2023 the measure was extended until 31 December 2023. |
Public media hirado.hu reported that the special offer scheme had positive impacts so far, with demand for the items on sale rising by up to 30%.
Workers | Businesses | Citizens |
---|---|---|
Does not apply to workers | Does not apply to businesses | Applies to all citizens |
Actors | Funding |
---|---|
National government
Company / Companies |
Companies
|
Social partners' role in designing the measure and form of involvement:
Trade unions | Employers' organisations | |
---|---|---|
Role | Consulted | Informed |
Form | Direct consultation outside a formal body | Not applicable |
Social partners' role in the implementation, monitoring and assessment phase:
Minister for Economic Development Márton Nagy met with representatives of the largest food chains on two separate occasions, where they were briefed about the details of the special offers scheme, napi.hu reported. Social partners, the Hungarian Federation of Consumer Co-operative Societies and Trade Associations ÁFEOSZ-COOP, the Hungarian National Trade Association MNKSZ, as well as the National Association for Commerce OKSZ were also present. György Vámos, secretary general of the National Association for Commerce (OKSZ) told 24.hu there were some elements of the scheme on which the OKSZ’s opinion was incorporated, but refused to say which ones.
György Vámos, head of the National Association for Commerce (OKSZ) said when there is a mandatory price cut, retailers lose revenue, for which they try to compensate by postponing investments or by raising the prices of some other items, he told telex.hu. He added that in the current inflationary environment, raising prices is impossible. The MNKSZ expressed disagreement with the scheme, saying it would not bring positive change, and will only increase inflation further, napi.hu reported. However, Katalin Neubauer, general secretary of the MNKSZ told 24.hu that a lot depended on how Hungarian wholesalers would respond, “if they were good partners, it could prevent shops from raising imports to fulfil the special offer requirement”.
This case is sector-specific (only private sector)
Economic area | Sector (NACE level 2) |
---|---|
G - Wholesale And Retail Trade; Repair Of Motor Vehicles And Motorcycles | G47 Retail trade, except of motor vehicles and motorcycles |
This case is not occupation-specific.
Citation
Eurofound (2023), Mandatory special offers for food products in shops to counter inflation, measure HU-2023-22/3222 (measures in Hungary), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/HU-2023-22_3222.html
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