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HATC SAMPLE EDITION:
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13th February, 2026
Gov’t extends profit margin cap until May
The government will extend the profit margin caps on a range of basic foodstuffs for retailers, which were set to expire at the end of February, until the end of May, the Economy Ministry announced after the January inflation data was released.
In the statement, the ministry highlighted that the 1.3% year-on-year increase in food prices was the lowest since January 2017 and argued that the caps had significantly contributed to reducing inflation.
SZÉP card vouchers will be available to buy cold food items until the end of April, the statement added.
However, OKSZ, the retailers’ association, protested that the decision had been made without consulting the sector.
The profit margin cap is a “superficial” and “short-term” tool that is ineffective in the long run, as it does not address supply chain inefficiencies, price pressures from suppliers, or the effects of income outflows, OKSZ argued, adding that the most effective way to manage inflation is through “healthy competition”.
When asked by Portfolio, the Tisza Party also stated that long-term state interventions, such as a price cap, are incompatible with a functioning market, but that the phase-out should be carried out in a way to minimise price increases.
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Sources regularly consulted, with abbreviations used in text: Népszabadság (N); Magyar Hírlap (MH); Világgazdaság (VG); Napi Gazdaság (NG); Magyar Nemzet (MN); Népszava (Nsz); Kossuth Rádió news (KR); nightly TV news (TV).
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