February 8, 2023

Athens News

News in English from Greece

Prices in supermarkets in Greece and Europe – where are higher

Development Minister Adonis Georgiadis presented the results of the study ΙΕΛΚΑcomparing food prices in supermarkets in Greece and other European countries.

Mr. Georgiadis stressed: “The findings show that Greece remains competitive.” He noted that Greece is not the most expensive in terms of prices in supermarkets, and the reason for the increase in the cost of goods is not organized speculation.

The Minister assured that such polls will continue, as they are reliable and balanced. He called the rise in prices “the number one issue for consumers” and said the government’s assistance program will provide an opportunity to support those who are in dire need of it, and not only.

Recall that from February 2023, for six months (until July), the state provides a 10% subsidy for food purchases to households that meet certain criteria. This was announced by Greek Prime Minister Kyriakos Mitsotakis, speaking in Parliament. This measure will be financed by taxing the profits of oil refineries.

State assistance is 10% of the total purchases of all types of goods in stores that carry out retail trade in food. Depending on the composition of the household, limits are set on the total amount of monthly purchases – from 220 euros for a family with one member to 1000 euros. For each additional household member, the monthly limit is increased by 100 euros.

In a study presented by ΙΕΛΚΑ President Lefteris Kioses, price comparisons in supermarkets were conducted across 41 household basket product categories from 5,000 invoices from 8 November, the first week of the initiative, to 8 December, and included all countries and products offered, and also private labels, tells CNN Greece.

Food prices in our country were studied in Slavenitis, AB, MyMarket, Masouti, Market supermarkets, which represent 90% of the total turnover, and compared with the corresponding supermarkets in Spain, Great Britain, Italy, France, Portugal.

Comparison of average prices shows that three countries have a significantly more expensive average basket than Greece: 15% France, 8% UK, 5% Italy. Two more countries offer about the same as Greece – Portugal is 1% more expensive, and Spain is 1% cheaper.

However, the picture of the results changes significantly when we subtract the corresponding VAT by country to understand the real prices of food in supermarkets. In this case, the basket comparison shows that all six countries have a more expensive average basket than Greece: France at 23%, the UK at 17%, Italy at 13%, Spain at 6% and Portugal at 4%.

This is VAT related to food and beverages. In Greece it is 13%. The tax is significantly higher than in the UK (0% or 5%), France (10% and 5.5%), Spain (10% and 4%), Portugal (13% and 6%), Italy (5% and 4 %) and in most countries EU. The main difference is that food products, which in Greece are subject to a high VAT rate of 24%, are subject to a low rate in other countries, which is also lower than in Greece – 6%, 5.5%, 4% and even 0%.



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