Prime Minister Viktor Orbán said in a weekly interview with public radio on Friday that supermarkets' margins over procurement prices will be capped at 10pc for a number of staples.

Justifying the profit margin cap, PM Orbán said prices should have fallen as the increasing chances for a peaceful resolution to the war in Ukraine showed up in the economy, noting the forint's strengthening against the euro as well as falling global gas and crude prices.

At talks with government representatives, he said supermarket chains had made proposals on price reductions, but those were "significantly short" of the government's expectations and wouldn't have had a tangible effect for consumers.

PM Orbán said the profit margin cap regulations, in force from Monday, would prohibit supermarket chains from passing on the impact of the measure to producers. Hungarian farmers may not be disadvantaged by the step, he added.