Price Cuts Have Taken Effect
Recent measures by the Development Ministry to combat inflation have led to noticeable price reductions across a variety of commodities, effective from this past Friday. Among the most significant changes, infant formula prices have seen a reduction ranging between 5% and 16%, bringing some relief to households around Greece.
This price adjustment follows the implementation of new anti-inflation measures which put a cap on gross profit margins for certain products. These adjustments were reflected on the retail shelves from the first day, indicating a swift application of the ministry’s directives.
Despite these reductions, it’s important to note that the price of baby formula in Greece remains higher compared to other European countries. A recent survey conducted highlighted that the prices of ten infant formula products dropped by 4.99% to 16.41% almost overnight. Moreover, further reductions up to 28% from certain suppliers indicate a significant move towards making essential goods more affordable.
The measures have also impacted the prices of other goods significantly. Suppliers have reduced their allowances to retailers, who in turn have passed these savings onto the consumers. For example, a notable decrease in prices is seen in the personal care, detergents, and cleaning products categories, where prices have been cut by an average of 15% across 3,900 product codes. One prominent example is the price of a leading brand’s pack of baby diapers (50 pcs), which dropped from 12.45 euros to 10.40 euros, showcasing a significant decrease of 16.47%.
Apostolos Petalas, the general manager of the supermarket association, elaborated that in large stores, price changes have been applied to 100% of the product codes, whereas smaller outlets are expected to complete price adjustments in the coming days.
The effectiveness of these price reductions, and their ability to combat food inflation, remains to be seen. The ministry is hopeful that this initiative will at least stabilize the prices in basic food categories. They have taken further steps to maintain price stability by blocking promotional offers if any price increases are implemented after January 10, 2024, effectively dissuading companies from raising prices. Recent interactions indicate that supermarkets are set to further reduce prices in an additional 300 product codes, showcasing a commitment to extending these measures.
