Price Monitoring System Saves Households Millions

The Hungarian Competition Authority (GVH) launched an online price monitoring system in July 2023 to help combat food price inflation. The system provides consumers with price comparisons across retailers, aiming to stimulate competition and bring do

By: hungarytoday.hu

Sep 05 2024
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Price Monitoring System Saves

According to calculations by the Macronome Institute, the system’s most significant impact occurred during the winter months. Between December 2023 and February 2024, food price inflation was reduced by an average of 1.45 percentage points. This resulted in savings of HUF 19.4B (EUR 49M) for Hungarian households over the three-month period.

The price monitoring system had a notable effect on certain food products. The most significant price reductions were observed in non-fat milk (12.19 percentage points), eggs (12.16), butter (9.87), fresh fruit (9.49), and bread (9.10). Across 14 product sub-classes, the system achieved considerable price reductions, contributing to a reduction in overall inflation by 0.2 percentage points over the eight-month period.

In total, the system reduced food inflation by 1.68 percent in December, 1.57 percent in January, and 1.11 percent in February, compared to June 2023 levels.

When these reductions are compared with retail food sales during the same period, the system saved households nearly HUF 20B (EUR 50M).

The analysis by the Macronome Institute confirmed that increased competition among retailers—stimulated by the price comparison system—delivered significant financial benefits. Over six years, GVH’s activities have saved consumers nearly HUF 85B (EUR 215M) by preventing anti-competitive practices such as price-fixing and market abuses. This sum is over four times the authority’s annual budget.

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