“Citizens go to the stalls [des supermarchés], see prices rising (…) and they think it’s theft. It is understandable as this inflation is sudden and continuous”, is indignant, on the Skai radio channel, the Minister of Development and Investment, Adonis Georgiadis. Faced with rampant inflation which reached 12.1% – one of the highest in the European Union according to Eurostat – the conservative Greek government decided to launch, from 2 November, a “basket” allowing everyone households to find a product in 31 categories (bread, milk, pasta, rice, meat, etc.) at a preferential price in supermarkets, which generate more than 90 million euros in turnover per year.
All chains, in agreement with the ministry, must therefore promote a product for each category at a low price and advertise it on the Internet or on advertising brochures. Those who do not do so in time risk a fine of 5,000 euros per day of delay. This measure, which comes into force on November 2, must last at least until the end of March according to the Ministry of Development and Investment, knowing that the list of products may be updated as measure.
According to a study by NielsenIQ, Greek households paid, in the first nine months of 2022, in the country’s supermarkets, around 320 million euros more than in the same period last year, while buying less. of products (− 1.8%). The newspaper real news identified the waltz of labels in 27 categories: beef has increased by 33% in one year, milk, by 25%, and olive oil, by 26%.
Emergency grant
But it is above all in the field of energy that the increases have been the most spectacular: gas prices have quadrupled in one year (+ 332%), and those of electricity have soared by 30%. As winter approaches, many Greeks fear they won’t be able to warm up properly. According to a recent survey by the Marc Institute, the greatest concern of the Greek population is the increase in the cost of living (at 84.5%), far ahead of tensions with Turkey (44%).
Prime Minister Kyriakos Mitsotakis announced in September the release of an envelope of 5.5 billion euros with exceptional aid of 250 euros for the lowest incomes, housing aid for students, as well as a subsidy for urgency for farmers. The Ministry of Energy has also set up allowances to reduce electricity bills: for consumption of around 500 kWh per month, for example, the aid is 238 euros. But, for 51% of people questioned by the Pulse polling institute, this aid is not enough.
For the main opposition party, Syriza (radical left), “this measure of the household basket is a mockery, a government communication game”. Syriza would like the value added tax (VAT) on foodstuffs (from 13%) to be lowered, as well as fuel taxes, to relieve households. “It is a misconception to think that by reducing VAT, inflation will disappear”replies Adonis Giorgiadis.