Price increases shock Greeks: + 50% on electricity bills, 15-20% on essential goods

Rising prices, with a shocking 50% increase in electricity bills since September and a 15-20% rise in some basic necessities, threaten to impoverish one in three Greek households.

The government is signaling that it will take action to contain the problem through a series of interventions in a market that operates by its own rules.

The Greek government justifies these hikes by increasing energy consumption and therefore transportation around the world, as well as a new beloved story of “climate change”, that is, prolonged heat waves and droughts that have increased consumer demand.

At least two ministers warned of price hikes at a cabinet meeting on Thursday, calling it “a global phenomenon that will not ignore our country.”

Development Minister Adonis Georgiadis cited as an example the favorite drink of the Greeks, coffee, and said that his price in a cafe could rise from 2 to 5 euros. * Typical of this minister is that he quoted the “drought in Brazil” as if there is only one country that produces coffee.

Rural Development Minister Spilios Livanos spoke about price increases on animal feed and raw materials by more than 40%, which affects the construction sector.

Note that about 50% increase in electricity bills media spoke back in early August.

Prime Minister Kyriakos Mitsotakis will announce measures to reduce pressure on electricity consumers at Thessaloniki International Fair next weekend, media reported, adding that the energy minister will ask the electricity sector to do its part to curb tariff increases.

Electricity tariffs are becoming a priority as sources in the Ministry of Finance say the increase will have some permanent features that will harm large and socially vulnerable segments of the population, said Katimerini, adding that the prices for natural gas are also growing, which, however, is explained by the growth of the world price for this resource.

“A 15-20% rise in prices for essential goods should be viewed as highly probable,” he told the newspaper on Saturday.Ethnos”Professor of Economics at the University of Macedonia Yannis Hatzidimitriu, as well as consumer organizations. They point to the risk that one in three Greek families will face minor or major poverty problems this coming winter.

Households at risk of impoverishment

Hatzidimitriu recalled that due to various parameters, the rise in prices began in the first months of the year and showed a significant upward trend since the end of spring. He predicted that a clear idea of ​​how the situation with home wallets will develop is very likely in the coming October or November.

However, based on current data, a rise in commodity prices of around 15-20% should be considered highly likely. The aforementioned percentage may not be very high, but in no way can it be described as easily managed by families who even today have very little income to earn a living.

“If the trend towards price increases will continueI believe that 50% of households will not face any problems. And 20% will be forced to cut consumption, but I believe that it will continue, but the remaining 30% will face serious problems, especially if the rise in prices for essential goods is large. For example, if the price of bread or milk increases by 10%, the situation will be generally manageable, but the problems will be enormous and some families will be stressed if their prices rise by 30% or 40%, ”the professor said.

Speculation

The President of the Consumer Protection Center (KEPKA) Nikos Tsemperlidis called on consumers and producers to unite for a collective response to make a strong statement about poor market performance and reduce the phenomenon of impoverishment.

Zemperlidis stressed that the market already has the phenomenon of speculation and speculation.

PS How will the prime minister and the government restrain the rise in prices in the energy sector? Is it advised to turn off consumption? He is likely to announce direct and indirect tax cuts, and consumers paying + 50% on electricity bills and + 15-20% on essential goods will see benefits from government measures in the coming … years.

Of course, there is no talk of raising wages, especially when the Greeks fear new isolation due to the pandemic, even if the government vehemently rejects such an option.

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