BUDAPEST, May 28 (Xinhua) -- The Hungarian government has decided to extend the profit margin cap on food products until Aug. 31 in a bid to curb inflation and prevent unjustified price hikes, Gergely Gulyas, minister of the Prime Minister's Office, said on Wednesday.
"The government remains committed to curbing inflation and preventing unjustified price increases," Gulyas said at a press conference.
The measure, introduced in mid-March, limits retail profit margins to 10 percent on 30 basic food items, including staples such as eggs, butter, and sour cream. The cap was originally set to expire at the end of May.
Gulyas said the policy has been an effective tool in fighting price increases and forms a key part of the government's broader economic strategy.
Although Hungary's consumer price inflation fell to 4.2 percent in April, food prices remain high, registering a 5.4 percent year-on-year increase.
The minister also reiterated the government's commitment to maintaining inflation control. He noted that consumer protection and competition authorities would continue to closely monitor compliance with the profit margin regulations.
