The cost of living in Greece continues to strain households, with supermarket prices remaining alarmingly high and heating oil prices climbing.
Despite a slight slowdown in inflation in December, Greece’s rate remains above the EU average, according to Eurostat. This persistent inflation, combined with relatively low wages and disposable income, has left Greek consumers struggling to afford basic necessities.
Supermarket Price Disparities
A key issue contributing to rising costs is the significant gap between production prices and supermarket shelves, according to a recent report at OT. For example:
- Cucumbers: Farm price €0.35–€0.80/kg, shelf price €2.97/kg
- Tomatoes: Farm price €0.10–€0.55/kg, shelf price €2.35/kg
- Apples: Farm price €0.45/kg, shelf price €3.65/kg
This disparity reflects the compounded costs of transportation, energy, packaging, and retailer margins. Recent years have seen this gap widen, driven by global supply chain disruptions, rising energy prices, and inflationary pressures.
Heating Oil Prices
Heating oil has also become a point of contention. While its price is lower year-on-year, it has risen in recent months. As of mid-January, the average price stands at €1.25/liter, up from €1.19 in December, reveals OT. International oil price increases and elevated distribution costs have contributed to this rise, with many households resorting to small purchases of €400–€500 to manage expenses.
The Broader Context
Greece’s cost-of-living crisis is exacerbated by low disposable incomes. Eurostat data shows that Greek households have among the lowest purchasing power in the EU, a legacy of the financial crisis. Essential goods now account for a larger share of household budgets, leaving little room for savings or discretionary spending.
Producers and consumer advocates are calling for regulatory interventions to address supply chain inefficiencies and ensure fair pricing. As the gap between farm prices and retail costs grows, the pressure on Greek households underscores the urgent need for reforms to stabilize costs and protect consumers.