Orban implements food price controls amid inflation surge

Coming into effect this Monday, Hungary's Prime Minister Viktor Orban has introduced new price controls on 30 essential food groups in an attempt to curb soaring inflation, which remains the highest in the European Union (via Reuters).

The move comes as households continue to feel the pressure of rising costs, with food prices surging 7.1% over the past year, exacerbating concerns over affordability, economic stability, and the long-term effectiveness of government intervention.

While the government argues that limiting retail price margins will ease consumer burdens, economic analysts warn that such measures have previously backfired, leading to unintended market distortions.

Meanwhile, the National Bank of Hungary faces increasing challenges, as the country's persistent inflation threatens its monetary policy and economic stability. For now, it remains to be seen whether these controls will bring relief or further strain to Hungary's economy.