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Government to ensure food retailers label items that indicate shrinkflation

The government is doing everything it can to protect families and is combatting consumer deception amid difficult economic circumstances.

A new government measure will ensure that food retailers with sales revenue of more than 1 billion forints (EUR 2.6m) provide labelling that indicates shrinkflation.

In a statement, the economy ministry said the government was doing everything it could to protect families and was combatting consumer deception amid difficult economic circumstances. In parallel with stagnant or rising prices of some produce, the size of packaging has been shrinking in many countries, the statement said, with consumers getting less for their money. The benchmark for the reduction in weight or volume will be the packaging of a given product between January 1, 2020, and July 1, 2023, and retailers must provide information for 2 months of the reduced size of the product, the ministry said. Producers and suppliers in Hungary will have to inform retailers of any reductions to the size of packaging. The consumer protection authority will take action in the case of non-compliance. Consumers can also access a public database on the National Food Chain Safety Authority’s (NEBIH) website. The measure is scheduled to be implemented in the first half of February, the statement said. The ministry also said that whereas 2023 was the year in which inflation was tamed, steps were being taken to restart growth, and the target in 2024 was for the economy to grow by 4%. Measures aim to boost confidence and consumption, maintain an investment rate above 25% and further increase labour market activity, it added.