Friday , February 3 2023
Home / News / Economy / Prices for consumer goods and services remain high in Greece despite crisis

Prices for consumer goods and services remain high in Greece despite crisis

Despite the economic crisis and the impoverishment of millions of Greeks, prices for consumer goods and services remained high also in 2017. According to a Eurostat report issued on Friday

Though Greece slipped to 24th place on the list of the wealthiest countries in the European Union in 2017 from 14th a decade ago, it remains the 19th dearest state in the bloc.

In 2007, two years before the country plunged into its eight-year-long economic crisis, Greece’s real gross domestic product (GDP) per capita stood at 95.1 percent of the EU average; by 2017 it had plunged to 69.7 percent.

However, the prices of goods and services did not follow the downward trend. Last year, these stood at 82.2 percent of the EU average, while in the important food and non-alcoholic beverages, Greek prices were 3.4 percent higher than the EU average, ranking it 13th in the category, above Portugal and Spain.

Greece’s predicament can be explained by the fact that competition does not work in several sectors, but also by the high indirect and special consumption taxes slapped on food.

In the category of alcoholic beverages and tobacco, Greece was the 12th most expensive country among the EU’s 28 last year, lower than the EU average but with a small 5.5 percent deviation.

The alcohol and tobacco sector was targeted by consecutive Greek governments, which imposed special consumption taxes during the eight years of adjustment programs to increase revenues.

But the sector where prices in Greece topped all EU member-states is communications – including telephone and postal services, and  equipment – where the country exceeded the EU average by 54 percent.

On the other hand, the country was cheaper in housing and education, with prices last year remaining below the EU average with 36.9 percent and 35.8 percent respectively.

With regard to housing, Eurostat figures present half the picture, as the data does not include other financial burdens such as the unified property tax (ENFIA).

For the Greek economy to converge with the EU-28 over the next 10, 15 and 20 years, its real GDP per capita will have to expand at a rate of 3.2, 2.1 and 1.6 percentage points higher, respectively, than that of the bloc’s, Eurobank said in its weekly bulletin.

Price levels for consumer goods and services differ widely among EU Member States, the Eurostat said.

Denmark and Luxembourg had the highest price levels in 2017 (both 41 % above the EU average), followed by Sweden (35 % above), Ireland (28 % above), Finland (23 % above) and the United Kingdom (17 % above), while the lowest price levels were recorded in Bulgaria (56 % below the EU average), Romania (52 % below), Poland (47 % below), Hungary (42 % below) and Lithuania (40 % below).

At a more detailed level, Denmark was the most expensive Member State in 2017 for “restaurants and hotels” (51 % above the EU average), “food” (50 % above), “recreation and culture” (48 % above), “transport (28 % above) and “household equipment” (20 % above). Ireland was the most expensive Member State for “alcoholic beverages and tobacco” (74 % above), Luxembourg for “housing, water, electricity and gas” (63 % above), Greece for “communications” (54 % above) and Sweden for “clothing and footwear” (34 % above).

PS Wait to see the price hikes in consumer goods especially in food items in the last couple of weeks in July and August. From what I’ve seen in supermarkets prices are up an average of 0.20 to 0.30 cents in staple goods like coffee, cereals, milk.

Half a kilo of German brand filter coffee rose to exorbitant price of €9.12 from 8.80 until end of July. In German supermarkets the price is at €6.20, in online purchase even below 6 euros!

The cost for my breakfast alone rose to €5 per month – out of the blue and for no reason.

And there has been absolute no excuse for the price hikes as no new direct and indirect taxes have been imposed or any other austerity measures.

Check Also

No plans for another “Fuel Pass” subsidy at present, says Minister

Fuel prices are expected to stay low in the coming period and therefore there are …

One comment

  1. Bringing a supply of coffee to Rhodes, from the Netherlands coming september (Saying OXI! 🙂 , sick of getting treated badly as an army veteran)
    €3,50 / pound @ aldi…

    Does anyone know if there are any limits on coffee, bringing it into the country?