Hungary’s margin cap, which caps the amount of profit supermarkets can earn selling food, will be extended to drugstores as of May 19, with the allowed margin on toiletries set at 15 percent. Plans call for this to remain in effect until Aug. 31, after which it may be extended, reports Mandiner.
Minister of National Economy Márton Nagy has stated that the government policy of capping margins for certain products would result in an average price reduction of around 16-18 percent across the affected product categories.
Can Hungary’s new method for capping food prices be used in other Western countries?
The new law caps profit on food at a maximum of 10% for hundreds of products, including milk, eggs, and meats.
It’s a clear market intervention but it’s working. pic.twitter.com/1tqQwDXMez
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However, Lidl has now said it will continue its price reduction campaign for groceries in addition to weekly promotions and will also now reduce the prices of drugstore products.
Starting May 15th, Hungarians will be able to buy dozens of items, including detergents, shampoos, shower gels and various cleaning products at least 20 percent cheaper.
Judit Tőzsér, the head of corporate communications at Lidl Hungary, also spoke about the big sale. As she said, “Since the beginning of the year, the prices of many food products have decreased, and now we are continuing the trend with more beauty products and chemical products so that shoppers in Lidl stores can save not only money but also time and energy,” she was quoted as saying by Világgazdaság.
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