Re:Analysis finds Australia’s inflation being driven by comp...
by pas on Saturday February 25, 2023 @06:05AM
(#34935679)
Hungary tried price controls when this inflation cycle started. It still has some in effect.
Hungary has more than two times the inflation of the EU average. The highest in the EU.
Price controls on flour and gas/petrol led to people buying a lot more compared to supply. This led to gas stations closing. People started baking more, but price of bread exploded because folks bought flour and bakeries were in a tight spot (I don't remember the exact chain of events).
Of course grocery shops increased the price of everything else relatively to make up for the loss on the controlled items.
Clearly, tackling inflation should be independent from providing basic necessities like food and shelter and healthcare.
Hungary has more than two times the inflation of the EU average. The highest in the EU.
Price controls on flour and gas/petrol led to people buying a lot more compared to supply. This led to gas stations closing. People started baking more, but price of bread exploded because folks bought flour and bakeries were in a tight spot (I don't remember the exact chain of events).
Of course grocery shops increased the price of everything else relatively to make up for the loss on the controlled items.
Clearly, tackling inflation should be independent from providing basic necessities like food and shelter and healthcare.