According to the Hungarian Chamber of Commerce and Industry (HCCI), the long-term continuation of the profit margin cap no longer effectively serves either the fight against inflation or the competitiveness of Hungarian businesses. In agreement with all business advocacy groups operating in the sector, the Chamber supports the phase-out of the measure.
The introduction of the margin cap was a short-term justifiable tool during an extraordinary inflationary situation, but it cannot become a permanent operational model for the economy. The Chamber’s position is that phasing out the margin cap is now economically justified, manageable from an inflation standpoint, and firmly pressing from a competitiveness perspective.
The HCCI's stance on this issue has been consistent. As early as February 2026, following discussions with the European Commission delegation regarding the annual Rule of Law report, the Chamber indicated in a publicly released statement that the margin cap and similar direct price regulation interventions may contribute to lowering consumer prices in the short term, but their prolonged application is not a market-based solution, distorts competition, and disrupts natural market mechanisms.
The HCCI reaffirmed this position on April 22, 2026, in a statement given to Pénzcentrum. The Chamber's Secretary-General stated at the time that "price measures of this nature must be time-limited, predictable, and phased out gradually."
In the current economic environment, the Chamber believes it is justified to begin phasing out the regulation. According to arguments framed by professional organizations, more favorable inflationary trends, falling producer prices, and central bank evaluations all create greater room for maneuver so that ending the margin limit does not jeopardize price stability.
According to July data from the Hungarian Central Statistical Office, food prices fell by 4.4 percent year-on-year, while agricultural producer prices dropped by 13.9 percent. This market environment offers an exceptional opportunity to phase out the temporary measure.
According to the Central Bank of Hungary's June Inflation Report, phasing out the margin cap at that time would have raised the inflation trajectory only temporarily, by a maximum of 0.4 percentage points. The central bank's analysis indicates that even with the phase-out, inflation could remain below 3 percent in 2026 and 2027, reaching the medium-term inflation target in 2028. This suggests that, with proper preparation, ending the regulation does not threaten price stability.
The Chamber notes that the optimal phase-out window would have been during the summer months, when market trends and consumer habits presented more favorable conditions for a smooth transition. Although this time window has partially passed, further delay carries increasing economic and business risks.
Persistent state regulation of profit margins distorts competition, impairs businesses' ability to adapt, invest, and develop, increases import pressure, and causes tension among domestic producers, processors, suppliers, and retailers. Market distortions can particularly affect small and medium-sized enterprises, as well as the rural retail network.
In its previous assessment, the HCCI also drew attention to the fact that although the regulation formally applies only to retail players with annual revenues exceeding 1 billion HUF, the economic consequences are felt more broadly. Larger chains, often with international backing, are in some cases able to compensate for their losses on other product groups or in other markets, whereas smaller, typically rural stores have more limited leeway. Products subject to the margin cap represent a significant portion of turnover for these businesses, meaning that a prolonged margin restriction directly threatens their profitability and operational sustainability.
Businesses need a predictable operating environment, while consumers require stable and transparent price conditions. This dual objective can be met if extraordinary regulations are gradually replaced by normal market economy and competition mechanisms. Phasing out the margin cap is no longer a matter of principle, but a task of timing and execution that must be resolved responsibly and without unjustified delay, emphasizes the Hungarian Chamber of Commerce and Industry.
