Prime Minister Viktor Orbán said the government would cap retailers' profit margins on some staples at 10pc from the middle of March.
In a video message posted on social media on Tuesday, PM Orbán said the cap would apply to 30 basic foods and remain in force until the end of May. If a review determines that the measure is still necessary at that time, it will be continued, he added.
He said the government had held talks with supermarket chains to mitigate "unwarranted and exorbitant" price increases, but the retailers' offers were "well short of our expectations".
He noted that the price of eggs had climbed 40pc and butter and sour cream prices were up more than 80pc. "That's unacceptable," he said.