Over 25 months, food prices continue to rise

Against the backdrop of a decline in the overall consumer price index to 1.8%, prices for food and consumer goods not only do not decrease, but continue to grow, completely emptying the pockets of consumers.

In just one month, in June compared to May 2023, food prices increased by 2.1%, while in May, compared to April, prices increased by 1.8%. It looks like food inflation, which jumped to 12.2% in June from 11.6% in May, will continue to grow in the coming summer months due to tourist flows. Businesses will maintain high prices due to increased demand, thereby increasing their profitability. The increase in prices for consumer goods is also significant: the annual increase in June was +9.3%.

“Inflation of greed” and government measures
Prices for food and household items for immediate consumption even exceeded 50% in the last 12 monthsdraining the wallets of the poorest households. That is why the government has decided to extend “easing” measures such as the Market Pass, the “family basket” and the “return rate ceiling” until at least the end of 2023.

The new development minister Konstantinos Skrekas, in order to fight the phenomena of a possible market bad faith, announced the extension of control to the entire supply chain, and not just to supermarkets.

However, inflation and ultimately “lust for profit” is not solved by promotions (i.e., the commercial practice of companies to protect their shares from infringement on private label products), subsidies, or measures such as the “family basket”. “, experts say.

According to a Hellenic Retail Business Association survey, one in two consumers intend to cut spending on purchases in the next six months, with bills and groceries now the top two spending as a percentage of monthly spending.

The bill (average prices) for a typical supermarket “basket” of 25 branded products increased by 6.65% year-on-year, according to data compiled by the Ministry of Development and Investment and displayed on the e-Consumer digital platform.

Although the overall percentage increase seems small, there are products that are up to 50% more expensive than last year:

• Olive oil (extra virgin) has risen in price by 11.7% compared to the same period last year, and soft drink cola (1.5 l) is 21.6% more expensive on the shelf.
• The cost of potatoes increased by 19.5% over the year (from 3.69 euros per 3 kg last year to 4.41 euros this year).
• Packaged feta rose in price by 6.2%, while the price of fresh milk increased by 10% (1 liter costs 1.55 euros from 1.41 last year).
• At the same time jumped prices for essential goods. For example, the price of liquid dishwashing detergent has increased, since in 12 months it is sold 50.5% more expensive, and the price of toilet paper has risen significantly over the same period (by 22.4%).

The battle for a place in the basket
Against the backdrop of “monstrous” inflation, the “family basket” program (applies to supermarkets) intensifies the “struggle” between branded and “unknown” products. According to experts, in terms of savings, citizens prefer to purchase goods with a supermarket brand. The main private label product categories that show sales growth continue to be food (milk, yogurt, cheese on toast, pasta, legumes, etc.) and household goods (dishtowels, toilet paper, cleaning products, etc.).

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