I know nothing about the Hungarian retail market, but as long as the country’s food producers and processors are coordinating price rises -which is what the article suggests- I doubt that this profit-margin cap will bring inflation down. Or is there something I don’t see?
I know nothing about the Hungarian retail market, but as long as the country’s food producers and processors are coordinating price rises -which is what the article suggests- I doubt that this profit-margin cap will bring inflation down. Or is there something I don’t see?
[Edit typo.]
No, they’ve tried this before, it raised inflation as prices went up on everything not in the cap, and the stuff in the cap ran out in days.
It lets the average voter blame the retailers for prices instead of the government is all it does.
Didn’t know that they tried this before, but the effect is absolutely predictable. This is neither a ‘price cap’ nor a ‘profit-margin cap’ imo.