Hungary announces food price cap to fight inflation
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"Let's turn the price issue into a supply issue!"
Anyone want to give me an under/over on how long until we see food shortages?
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Original titeling is bad. "Hungary announces food profit-margin cap after supermarket boycotts", would be less emotionalised, IMO.
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I no 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?
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Original titeling is bad. "Hungary announces food profit-margin cap after supermarket boycotts", would be less emotionalised, IMO.
Yeah, a profit cap is a much different beast than a price cap.
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I no 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?
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 gocernment is all it does.
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Yeah, a profit cap is a much different beast than a price cap.
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.
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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 gocernment is all it does.
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.
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