National Bank: Greece is one of the most expensive countries in the eurozone in terms of basic product categories

Greece remains one of the most expensive countries in the Eurozone for basic grocery prices in supermarkets, with the price difference for sparkling water reaching 129% and for UHT milk 56%, according to a Bank of Greece study published today.

Manufacturers and retailers are responsible for most of the price differences, while consumer habits also play a role, Kathimerini reports. According to the researchers, “competition in the manufacturer market, retail market concentration, and consumer habits explain a significant part of the price differences between countries.” It is no coincidence Bank of Greece Governor Yannis Stournaras stated that there are oligopolistic conditions in the market, in particular in the food market.

According to researchers (Alexandros Karakitsios, Theodora Kosma, Dimitris Malliaropoulos, Georgios Papadopoulos, Pavlos Petroulas), for the most traded goods, bringing the structure of the Greek market and consumer behaviour in Greece to the corresponding levels in the eurozone would lead to a reduction in price differences by an average of 17 percentage points.

On average (in 2023) Greece 10% more expensive than the eurozone averagein the 41st category of standard branded goods and is included in the number most expensive countries. Of course, this is an improvement on 2011, when it was 19% more expensive. But countries like Ireland, also among the most expensive, have narrowed the gap from 26% in 2011 to just 2% in 2023. Countries like France (93%) and Germany (98%) remain above average, although the latter gap has narrowed since 2011, when they were 10% cheaper. However, wage levels in these countries are also significantly higher than in Greece.

The difference compared to the Eurozone reaches 129% for sparkling water and 56% for milk with a long shelf life. The study focuses in particular on two specific product categories: the most expensive compared to Eurozone products and those with the largest share of sales in Greece.

In the case of the most expensive products – compared to the Eurozone – the difference is on average 61%. In particular, ground coffee is 50% more expensive, butter – 54%, margarine – 60%, and paper towels – 100%. If we exclude the products with the largest share of sales in Greece, which are most representative of the Greek consumer's “basket”, the difference is limited to 3%, which means that Greece remains, albeit slightly, more expensive than the Eurozone.

In fact, if you include local olive oil, which is 24% cheaper than in the Eurozone, the difference between Greece and the Eurozone increases to 5%. Instant coffee is 17% more expensive, cereals 15%, carbonated soft drinks 15% and whiskey 7%. In addition to olive oil, some other locally produced goods are cheaper, such as shampoo 13% cheaper, fresh milk 8% cheaper and baby nappies 4%.

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