Greece: Supermarket Prices Fall in July

The Institute for Retail Consumer Goods Research (IELKA) reported notable price reductions in Greek supermarket prices in July, reflecting a decrease in the monthly price index for essential consumer goods.

The data for July 2024 shows an inflation rate of -1.56% within supermarket chains, a slight improvement from -1.92% in June, -1.25% in May, and positive figures earlier in the year: +1.10% in April, +0.28% in March, +2.70% in Feb., and +3.00% in Jan.

This decline was largely due to the continued easing of prices and seasonal effects associated with summer.

Significant reductions in Greek supermarket prices were observed in several categories: fresh fruits and vegetables down by 7.34%, detergents and cleaning products with a 6.77% decrease, paper products, cosmetics, and personal hygiene items (-6.32%), pet food and supplies (-5.19%), and baby and child food (-3.72%).

The decrease in prices for fresh fruits and vegetables is attributed to improved weather conditions compared to 2023. For other products, reductions stem from market normalization post-pandemic and lower producer prices.

Conversely, some categories saw price increases, including fresh fish and seafood up by 5.90%, appetizers, pickles, and ready-to-serve items with a 5.11% decrease, grocery foods (+3.65%), alcoholic beverages (+3.21%), and sweets (+3.01%).

These increases are driven by seasonal demand related to summer and fluctuations in international raw material prices, such as sugar and cocoa.

Out of the 23 categories analyzed, 13 experienced price decreases while 10 saw increases. Factors contributing to the overall trend of holding back prices include improved weather conditions this year compared to 2023 which have notably reduced prices for fresh produce, and the influence of seasonality.

Additionally, the gradual decrease in inflation and government regulations have played a role. The rise in private label product sales, particularly in supermarket chains, has also contributed to the price trends, with these products seeing a growing market share over the past two years.