Hungary Implements Food Price Controls Amidst Highest EU Inflation

Hungary has implemented food price controls, initiated by Prime Minister Viktor Orban, effective Monday, March 17. This action follows Hungary experiencing the highest inflation rate within the European Union. The controls aim to mitigate the impact of rising food prices on households. The Economy Ministry has warned of extending the controls to all food categories if retailers do not comply. Hungary's annual inflation stood at 5.7% in January, exceeding the EU average of 2.8%. Economists predict inflation could peak at 6.5% in October, averaging 5.6% for the year. The central bank cautions that previous price caps led to companies increasing prices on other products to offset losses. The rebound in inflation has also prompted the National Bank of Hungary to pause rate cuts.