this post was submitted on 12 Mar 2025
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Europe

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[–] 5714@lemmy.dbzer0.com 23 points 15 hours ago (1 children)

Original titeling is bad. "Hungary announces food profit-margin cap after supermarket boycotts", would be less emotionalised, IMO.

[–] DragonTypeWyvern@midwest.social 13 points 11 hours ago (1 children)

Yeah, a profit cap is a much different beast than a price cap.

[–] HK65@sopuli.xyz 2 points 10 hours ago

Not really, especially since the government currently has a 31.5% tax on consumption.

This will cause both shortages and inflation, just like last time.

[–] Hotznplotzn@lemmy.sdf.org 2 points 12 hours ago* (last edited 11 hours ago) (1 children)

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.]

[–] HK65@sopuli.xyz 5 points 10 hours ago* (last edited 10 hours ago) (1 children)

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.

[–] Hotznplotzn@lemmy.sdf.org 1 points 9 hours ago

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.

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.