The time when 50 euros offered a sense of security to consumers when they reached the checkout of the supermarket seems very distant now. After two years of merciless precision, 50 euros have become a little less than 37 euros and now the basket is only 2/3 fullcreating stress and insecurity not only in the poorest households, but also in the so-called “middle class”.
€ 37 After two years of merciless accuracy, 50 euros has become a little less than 37 euros and now the basket is only 2/3 full
The slow deceleration in food inflation – in March the ‘food and non-alcoholic beverages’ category ran +5.3% and for the first time in several months fell off the peak of increases – is no cause for celebration. And that’s because it’s more technical. The change in the sectoral index results from the comparison of this year’s price with the corresponding last year’s. For the record, let’s say that the March 2023 food inflation was 14.3% in relation to March 2022.
Thus, despite the Skrekas measures, which followed the Georgiadis measures, a basket of 19 basic food products which cost 50.11 euros on March 1, 2022, it costs today 63.42 eurosi.e. 26.5% more expensive.
It should be noted that March 2022 was the last month when food inflation was single-digit, since for the next 17 months, i.e. until August 2023, it “ran” with a double-digit growth rate.
Therefore, in order to buy the same products without paying more, you will have to reduce the quantities, or remove products, or choose exclusively private label products, which although more expensive compared to March 2022, are still cheaper approx. 30% against brand names.
The olive oil
A more typical example is olive oil. Within two years it has appreciated on the shelf by 103.5%, as from 7.66 euros per liter the average price has reached 15.59 euros (e-Consumer details). And the uphill continues. In March this year, according to ELSTAT, the annual increase in its price was 67.2%, boosting the general index by 0.53%.
The protein is golden
The cut in the feta should be just as big, as within two years its price will increase “white gold” has risen by 23.8%. From 4.84 euros, 400 grams in 2022 is now sold at 5.99 euros and even on sale. Scissors are also necessary in other protein foods, such as yogurt and eggs, since the prices have increased in two years by 23.7% and 21.8% respectively. The picture is similar for fresh milk, with prices higher by 5.8% compared to March 2022.
* The packages have changed/shrunk, in the margarine instead of 500 g it is 400 g, while the toast bread is 480 g
One kilo less
Although the price of chicken has been contained, the “chicken with potatoes in the oven”, one of the favorite foods of Greeks, is finally more expensive and the reason is the potatoes, the price of which has jumped by 35.6% in two years.
The prices of soft drinks have also increased. In March this year and while the category of food items and non-alcoholic beverages appreciated by 5.3% on an annual basis, the prices of soft drinks increased by 13%.
Fruit inflation
Of the approximately 4-5 apples that “come out” per kilo with the same money today, someone buys 4-4.5 as the average price during the inflationary crisis has increased by 13%, from 1.31 euros per kilo to 1 .48 euros per kilo.
And of course, not only apples are more expensive, but all fresh fruits, as based on ELSTAT data, comparing this year’s March with March 2022, prices are 14.1% higher. Something that is also reflected in Eurostat’s harmonized consumer price index, with “fruitflation” in our country (“fruit inflation” in Hellenistic) for many months hitting pan-European firsts.
Bitter coffee
With GDP per capita in purchasing power units at 67% of the EU-27 average, while the price level in Greece is at 88.2% of the European average (latest published figures are for 2022), even solace coffee must be reduced by consumers for the bill to come out. The average price of branded instant coffee is 9.9% higher than two years ago.
Shrinkflation
On the other hand, in margarine and toast bread, consumers do not need to cut the quantities due to accuracy, the suppliers took care of it! The old half-kilo packages no longer exist, with consumers also in Greece learning what “shrinkflation” is, i.e. the phenomenon of reducing the contents of product packages without a simultaneous price reduction. Thus, the cup of a well-known margarine is sold cheaper today compared to March 2022 (from 2.68 euros to 2.63 euros), but it is 400 grams instead of 500.
Correspondingly, the 500g package in the two-slice toast bread is no longer available, but the price is 4.9% higher than in March 2022, when the price of flour had soared due to Russia’s invasion of Ukraine, its breadbasket. Europe.
And one reason for the flour, it should be noted that the prices on the shelf within two years have increased by more than 30%, but mainly for the single packages of one kilo, as the prices per kilo are lower in the multipacks.
Do the measures work?
However, for the Ministry of Development, things are not so bleak, with high-ranking officials stressing that the course of food inflation (s.s.: decreased successively from 8.3% in January to 6.7% in February and to 5, 3% in March) shows that anti-punctuality measures are already paying off. Yes, O Kostas Skrekas he noted that in the last month, after the implementation of the latest measures, in some chains inflation has dropped to 0.4%.
However, at the time when the Minister of Development “sees” the accuracy escalating, the market executives themselves, both from the retail and wholesale trade and from the supply companies, consider that the prices of goods in Greece are more expensive compared to the Europe, with the exception of greengrocers (netrino research).
Challenges
Consumer habits are changing
The Greek consumer entered 2024 tired and stressed not only from the inflationary pressure, but also from the pandemic crisis, as well as the economic crisis of the last decade in Greece. It therefore adapts in order to face these challenges, making small and large changes, as Mr. Vaios Dimoragas, Managing Director of NielsenIQ for Greece and Bulgaria points out. This means that:
- He spends more time at home because of the hybrid work model.
- He is more careful to buy what he really needs.
- He adapts to the idea that he needs less to be content and happy.
- He tries to take preventive measures for his health, to control the stress of everyday life, the pressure he feels and the growing lack of balance between personal and professional life.
- He is very careful with his purchases, being price conscious.
- He plans his purchases before arriving at the store, while checking product prices with his mobile phone and inside the store.
- He puts forward his priorities for healthier products.
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