New increase in food prices in September

As it turns out, measures such as Market Pass food aid do not take into account the ongoing 26-month rise in food inflation.

It is expected that a new price increase will begin in September. Market participants believe that measures such as Market Pass are not enough to cope with the high prices that have spread throughout Greece. Food inflation has been galloping for 17 straight months in double digits.

From March 2022 until today, food inflation has consistently exceeded 10% and continues to grow at a double-digit rate. Overall, food inflation has been positive for 26 consecutive months since June 2021.

A new round of increases is reportedly expected over the next month, estimated to reach 10% on several items, further burdening consumers who are seeing virtually all of their income literally “eaten away”.

In Greece, the situation is worse than in Europe, as evidenced by Eurostat data. The assessment of inflation in July, conducted by the European agency, showed an increase in the consumer price index in Greece compared to what is happening in most eurozone countries. Greece is positioned as the country with the highest monthly price increase of 24.5%. At the same time, Estonia is in second place, where growth does not exceed 7.2%.

In July, according to ELSTAT, food inflation in Greece, at 12.2%, was 1.4 points higher than in the Eurozone, which was 10.8%. This is the largest monthly increase among Member States, around 3.5%, and an increase of 2.1% compared to May.

In Greece, a total of 60 categories of food and drink prices rose by 52 over a six-month period, while only 8 categories recorded a decline of 2-4%. The increase in food prices during the summer ranged from 5 to 17%, with a record increase in fruit prices of 41%.

The main issue is the interpretation of the phenomenon in connection with the strengthening of incomes of citizens. The ND government seems to be in favor of extending the Market Pass until the end of the year, which, according to experts, is clearly not enough.

https://rua.gr/news/bissecon/56372-bolee-25-mesyatsev-tseny-na-produkty-prodolzhayut-rasti.html

The price index for crop products increased in June 2023 by 34.1% and reached 157.3 points. Apart from olive oil, which is expected to sell for more than 10 euros per kilo, and the spike in fruit and vegetable prices, producer prices for a number of other products are harbingers of high inflation. The price of goat milk (these are prices without subsidies) is 34% higher compared to 2022, which means very high prices for feta and other cheeses. The increase in prices for meat products is about 10.6% after an increase of 29.9% in 2022, eggs by 18.4% and potatoes by 27.2%.

There are also worrying signs on the part of imported industrial products. Although year-on-year, the industrial import price index fell 19.4% in June, it showed a slight increase of 0.5% compared to May 2023, the first increase after 7 months of decline.

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