Hungary’s competition authority has put importers and retailers on notice, warning that it is ready to deploy enforcement tools if companies fail to pass on the benefits of the stronger forint to consumers. The move comes as part of a closer cooperation between the Hungarian Competition Authority (GVH) and the central bank, with competition policy explicitly framed as a weapon against inflation.
In a joint initiative, the GVH and the Hungarian National Bank (MNB) are examining whether the forint’s marked appreciation against the euro and the US dollar in recent months is being reflected in lower consumer prices, particularly for imported goods and food products. The GVH said it is assessing whether market practices may be restricting competition or distorting price transmission, and has not ruled out launching fast-track sector inquiries or formal competition proceedings against companies found to be in breach of competition law.
The enhanced focus on competition enforcement was discussed on December 8, when MNB governor Mihály Varga and GVH president Csaba Balázs Rigó met at the central bank’s headquarters in Budapest to review and deepen professional cooperation between the two institutions.
Rigó stressed that the national competition authority sees itself as an active player in curbing inflationary pressures. “Within its legal mandate, the competition authority is committed to supporting growth-enhancing economic processes,” he said. “The GVH has already intervened at several points to rein in inflation. Cooperation with the MNB strengthens our resolve to act decisively against market players whose anti-competitive conduct fuels inflation.”
At the heart of the talks was the recent strengthening of the forint. According to both institutions, there is a clear economic and social expectation that currency gains should translate into lower prices for consumers, meaning that retailers should reprice goods purchased in foreign currencies more quickly and transparently.
Against this backdrop, the GVH has begun mapping importers’ and retailers’ pricing practices. The authority is examining how, and how fast, exchange-rate movements are reflected in shelf prices when the forint strengthens. Its stated aim is to uncover any competition-related reasons behind pricing anomalies and to intervene where there are signs of market distortion or restriction.
Possible measures range from market analyses and expedited sectoral investigations to full competition supervision procedures that can lead to sanctions. The GVH has also issued a warning to market participants and industry associations, urging full compliance with competition rules.
To support its investigations, the authority will draw on historical data from its online price-monitoring system, Árfigyelő. The platform tracks daily price changes for more than 5,000 food and household products across 140 product categories, covering nearly 1,800 stores operated by major national retail and drugstore chains.
