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Hungary adds more fruit and vegetable lines to price cap

The Ministry for National Economy in Hungary has extended the retail margin cap to 28 February 2026 and expanded the programme to additional product groups. The updated list includes several fruit and vegetable categories that are widely traded in domestic retail channels.

The ministry stated that the new inclusions cover apples, pears, plums, grapes, cabbage, tomatoes, onions, and green peppers. These products join earlier categories already under margin restrictions. The policy aims to limit retail margins on frequently purchased produce lines to keep consumer prices lower during the winter marketing period and into 2026.

According to the ministry, the introduction of margin limits has already reduced prices in the categories included in previous rounds. It reported that "drugstore products are more than 27 per cent cheaper on average, while food retail items have fallen by about 20 per cent". These reductions are described as ongoing.

The ministry noted that lower fruit and vegetable prices can support access to fresh produce. Items commonly bought by families with young children, such as apples, pears, and other core fruit lines, are included in the expanded list.

The measure is part of the government's broader approach to managing consumer prices. It follows earlier voluntary price-limiting agreements with other sectors, including banking, insurance, telecom, and pharmaceutical companies. The ministry stated that inflation would be "roughly 1.5 percentage points higher" without these combined steps.

For the greenhouse and open-field vegetable sector, the extension of the retail margin cap may influence retail pricing strategies for tomatoes, green peppers, onions, and cabbage. These crops form a substantial share of domestic winter and early-spring produce flows. The policy does not alter production requirements but may affect packer and retailer handling of these categories once they enter the wholesale and retail supply chain.

The government links the wider margin-cap programme to household consumption trends. According to the ministry, "the government's family-oriented tax policies and price-cutting measures for pensioners play a significant role in boosting household consumption and supporting economic growth".

The expanded list will remain in force until the end of February 2026, covering the bulk of the winter marketing window for key fruit and vegetable items.

Source: Hungarian Conservative

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