Greece expands initiative to lower supermarket prices
Greece is expanding a national initiative aimed at reducing prices on basic goods, with 686 branded products from 55 companies already included in the scheme, according to information from the Athens-Macedonian News Agency.
The initiative also covers 130 school-supply products and 100 private-label items. More companies and products are expected to join in the coming period.
Agreed price reductions will take effect from Aug. 31, with supermarkets and food manufacturers participating on a voluntary basis.
Supermarket prices fall in July
Prices on the shelves of major supermarket chains fell in July, according to the Institute of Retail Consumer Goods Research (IELKA).
The supermarket price index declined 0.47% year-on-year, marking the first annual decrease after seven consecutive months of increases and the lowest level since December 2024.
On a monthly basis, prices fell 0.77% compared with June.
The Development Ministry said the figures showed that cooperation between the government, food industry and organized retail sector was helping contain and gradually reduce prices.
Further reductions expected in September and October
Market representatives expect the downward trend to continue in the coming months.
Speaking to the Athens-Macedonian News Agency, Apostolos Petalas, general director of the Hellenic Supermarket Association, said 60 to 65 food and consumer-goods companies were expected to participate in the initiative.
He said discounts were expected to average between 6% and 7% and cover around 1,000 to 1,100 branded products.
Petalas said food-price inflation was expected to continue easing through October, helped by lower prices for fruit and vegetables and a stabilization in fresh meat prices.
Energy costs remain a concern
Despite the recent decline, retailers and manufacturers remain concerned about geopolitical uncertainty and high energy costs.
Petalas said rising energy expenses and higher packaging costs were putting pressure on businesses across the supply chain.
If those pressures persist, he warned that new price increases could emerge in Greece and elsewhere in Europe after October.
He also argued that competition, rather than direct government intervention, was the most effective way to keep food prices under control, pointing to the negative supermarket inflation recorded in July after the expiration of the profit-margin cap at the end of June.
