Retail prices keep increasing

A typical supermarket “basket” in Greece may be cheaper compared to other European countries, but it is not cheap, as the difference with other countries is very small, while the difference between incomes in Greece and Europe is often chaotic. 

Therefore, the average basket in the United Kingdom may be 21% more expensive than the equivalent in Greece, but at the same time average annual earnings in the UK are more than double those in Greece. Even in Portugal, where prices for basic groceries are notably lower than in Greece, average annual earnings are 23% higher than in Greece.

According to a recent report by the Organization for Economic Cooperation and Development (OECD), the average annual salary in Greece in 2022 was 23,736 euros, while in Portugal in the same year it was €29,166 and in Spain €39,160. The supermarket basket in Portugal, including VAT, is 3% cheaper than that in Greece, while in Spain it is only 0.37% more expensive.

Fixed low incomes and fixed high prices are exactly what makes inflation more unbearable for most households in Greece. 

At the same time, any measures taken so far to limit price increases have not yielded the expected results: According to data from the Research Institute of Retail Consumer Goods (IELKA), a representative basket of 39 products costs €151.95 today compared to €137.39 a year ago – an increase of 10.6%. The price increases in these 39 product categories range from 0.71% to almost 54% (in olive oil and jam). The price of dishwashing detergent has increased by 42%, laundry detergent by 23%, rice by 25%, spaghetti by 8.33%, orange juice by 38%, and tomato juice by 40%. Other hikes are observed in milk (5.5%), eggs (16.35%), feta cheese (11%), but also lentils (7.1%).

The consolation is that price reductions are recorded in 12 of the 39 product categories of the basket. Yet despite the drop in some food items, such as chicken and turkey (-16% and -14% respectively), as well as personal hygiene items, these are still considerably pricier than in other countries.