Consumers in Greece are facing rising prices for the ingredients of the famous Greek salad and fruits for the Mediterranean diet. Greece’s annual inflation rate in September was 1.6 percent, but the food sector experienced a much higher inflation rate of 9.4 percent, according to the Hellenic Statistical Authority (ELSTAT). In September, the prices of fresh vegetables and fruits were 24.7 percent and 15.7 percent higher respectively compared to the same period in 2022, while cheeses were 12.8 percent more expensive.
The cause of the problem does not appear to be increased production costs or the September floods in Thessaly. Instead, officials and experts attribute it to faulty competition in the local market, which allows for profiteering.
In response to the issue, the government has announced several measures to combat high prices and profiteering. Supermarket companies will now be required to report information on price increases to the authorities, and inspections of profit margins will be increased.
“The fight against overpricing will not stop,” said Development Minister Kostas Skrekas.
The production costs of fruits and vegetables increased by an average of 35 percent from 2022 to early 2023, but in the past six months, the significant price hikes in the local market were not justified, according to George Polychronakis, a special counselor of INCOFRUIT-HELLAS. He stated that the Thessaly floods only caused problems for a few weeks.
Greece’s domestic production of fruits and vegetables averages 8 million tons per year. The country exports approximately 3 million tons while the rest is consumed domestically. Strategic planning is needed to ensure better distribution throughout the year and to adapt production to demand and seasonal consumption, especially during the summer tourist season when Greece receives a high number of visitors.
“Monitoring over-profits and over-pricing of products in retail sales, in particular, is essential,” added Polychronakis.
