The Hungarian government plans to lift price caps on basic food products 16 months ago from August 1, 2023, while simultaneously ordering retailers to introduce deeper price cuts for certain food products, Gergely Gulyas, the cabinet, said on Thursday. director of the Prime Minister of Hungary, Viktor Orbán, reports Reuters.

Hungary now has the highest inflation in the European Union, although annual inflation fell in May for the fourth month in a row to 21.5%. For comparison, the average annual inflation in the EU in May was 7.1%.

At a press conference on Thursday, Gergelii Gulyas said that annual inflation may slow down to 15% in August, and single-digit inflation is possible by the end of the year.

“In the fall, the disinflation process will accelerate,” Gergelii Gulyas said.

In February 2022, the executive in Budapest introduced maximum prices for milk, sugar, flour, sunflower oil, pork and chicken in an attempt to protect households from rising costs, with prices later capped by fuel and mortgage rates. Despite the restrictions, the growth of food prices in Hungary reached 44.8% last December.

To curb rising prices, the government led by Prime Minister Viktor Orbán has also ordered major retailers to implement mandatory food price cuts.

On Thursday, Gergelii Gulyas announced that starting August 1, mandatory discounts on certain food products, which retailers will have to implement, will be increased from 10% to 15%, adding that this program will include products whose prices have been controlled until now . . (Agerpress)