ATHENS – The Greek government’s National Price Reduction Initiative is expanding to include more than 1,660 product codes, with an average price reduction currently at around 7%. The initiative launches, Monday, August 31, with Development Minister Takis Theodorikakos stressing that its aim is to provide meaningful support to households and contain the cost of essential goods.
The initiative, which is still being expanded and remains open to new participants, covers basic food and everyday household items, school supplies, private-label products, and meat, while the list is expected to grow further by the time of implementation.
According to the latest available data, approximately 900 branded products are participating, with an average price reduction of about 7% and individual reductions ranging from 5% to 30%.
More than 450 school-supply items are seeing an average reduction of approximately 10%, around 250 private-label products are being reduced by an average of 7%, while the average reduction among 60 meat products stands at 7.2%. The latter category includes both Greek and imported meats, including beef.
More than 90 suppliers, 12 supermarket chains, and three toy and school-supply chains have joined the initiative so far. The process remains open, and additional participants are expected to join.
The Development Minister has described the initiative as a “national social agreement” to support households, stressing that reductions on basic food products begin at 5% but are considerably higher in many cases.
Particular importance is being placed on the inclusion of branded products purchased regularly by Greek households. Branded pasta products, for example, have a significant presence on the list, while the overall effort focuses on frequently purchased goods.
Additional Reductions From Retail Chains
The final benefit to consumers is expected to exceed the current weighted average reduction of 7%, since the reductions offered by suppliers will be supplemented by discounts from the supermarket chains themselves.
These additional discounts will not be the same across all retailers. As a result, the same product may have a different final price depending on the supermarket chain where it is sold.
Despoina Tsangari, president and governor of the new Independent Market Oversight and Consumer Protection Authority, told the broadcaster OPEN that the supermarkets’ additional contribution is expected to be determined over the weekend, increasing the overall percentage reduction.
How Consumers Will See the Reductions
Reduced prices will be identified on store shelves with special signage, while consumers will also be able to access the information digitally through the ‘PosoKanei’ platform.
Through the platform, consumers will be able to easily find participating businesses, the products included in the initiative, and the reductions being applied. For branded products, a range of price reductions will also be displayed to account for the different additional discounts that individual supermarket chains may offer.
Initiative to Last Two to Four Months
The duration of the initiative will vary depending on the companies and products involved, ranging from two to four months. Companies that have committed to participating for two months have agreed to introduce new products during the following two-month period, while some products are already covered by four-month commitments.
The precise proportion and contribution of the 1,660 participating products relative to the total number of products sold in supermarkets is expected to be calculated soon after implementation. It is estimated that in an average supermarket – excluding the very largest stores – carrying between 15,000 and 20,000 product codes, approximately one in nine products has so far been included in the initiative.
The significance of the initiative, however, is determined not only by the number of products but also by the types of goods included, since many of the 1,660 products are staples in the everyday household shopping basket.
Inflation Indicators Positive
Tsangari expressed satisfaction both with the number of participants and with the composition of the list, while estimating that the number of products will increase further.
Regarding supermarket inflation, she described the early indications for August as very positive and estimated that food inflation could move into negative territory.
An estimate is also expected to be presented Aug. 31 of the monthly value of the price reductions on products participating in the initiative, providing a monetary measure of the potential benefit to consumers.
Market Inspections Continue
Meanwhile, market inspections aimed at monitoring price developments are continuing. According to Tsangari, the data available so far show no increases in branded-product prices during July and August, with the exception of one branded company. Authorities have contacted the company, which is not participating in the initiative.
She noted that companies’ promotional campaigns can sometimes create confusion regarding actual price trends, making continuous market monitoring necessary.
Theodorikakos has stressed that efforts to combat the high cost of living are continuing and that “we are neither declaring victory nor becoming complacent,” as international developments and geopolitical tensions continue to generate uncertainty and put pressure on prices.
According to Eurostat figures cited by the minister, food prices declined by 2.3% from June to July, while annual food inflation stood at -0.4%.
Complete data on all products participating in the National Price Reduction Initiative, along with an estimate of the initiative’s total potential financial benefit to households, are expected to be presented Aug. 31.
