Who? How could cause? In EU the second highest inflation is in slovakia (first is hungary), which is the half of the hungarian inflation. The difference is few hundred kms, and that in slovakia they dont have price capping commies like orban, and his comrades. And yes, here in hungary the real inflation is much more higher than the “measured” (ordered).
Comment on I feel the actual inflation
FluffyPotato@lemmy.world 10 months agoYea we have a food inflation pretty close to those measured numbers though in reality its a lot higher and that’s without any caps. Also how could a food price cap cause inflation in food prices? That’s literally the thing you are capping.
disconnectikacio@lemmy.world 10 months ago
rockstarmode@lemmy.world 10 months ago
The things that are capped no longer produce (as much) profit, so food suppliers move to items that do bring in profit. Uncapped goods are now more desirable, and the suppliers in rease prices to try to make up for the shortfall caused by price controls, making uncapped items even more expensive.
Government intervention like price controls always makes things more expensive, it’s just a question of where that expense is spread to.
FluffyPotato@lemmy.world 10 months ago
The government capped the price of electricity here a short while ago and that lowered the price of power massively.
Seems the solution would be to cap the price of all food then.
disconnectikacio@lemmy.world 10 months ago
No, it isnt lowered the price, but you will pay for it elsewhere, indirectly, same like we are in hungary (that also caused rise in inflation). Communism not worked, and never will
FluffyPotato@lemmy.world 10 months ago
Yea, price capping is as much communism as having public healthcare and when the price of electricity was capped it lowered the prices massively.
What was going on was the local power companies made deals with other countries and basically acted as middle men for reselling that power for a massive markup. Our government made a mandatory power plan that forces power companies to produce electricity locally for local supply at a fixed price and that pretty much fixed that. Those companies couldn’t sell power at a massive markup anymore because everyone would just switch to the government power plan then.