Prices of Goods Continue to Increase in Greece

Prices of everyday goods in Greece continue to increase, which has caused shoppers to cut back significantly in recent months.

The cost of everything from electrical appliances, cars, milk, and soap has increased substantially in Greece, much like in most of the world.

This increase in the costs of necessary items along with low wages in the country has caused concern amongst the country’s population regarding finances.

In the first five months of 2022, the number of sales at Greek supermarkets has gone down by 3.1 percent as compared to last year from 3.340 billion euros to 3.335 billion euros. This comes after five years of continuous growth in sales in the sector.

Nearly all products from milk to alcohol have seen a price increase. Sales of alcohol at supermarkets this year have gone down, but purchases of alcoholic beverages at bars and restaurants has gone up.

Similarly, sales of electrical appliances were down by 13.1 percent in the first four months of 2022 compared to the same period in 2021.

In terms of car sales, not only are vehicle prices particularly high at the moment but so is the cost of gas.

The average cost of gas in Greece has reached 2.376 euros per liter, and in Attica, home to Athens, the average price has reached 2.33 euros per liter.

Around this time last year, the average cost of gas hovered around 1.67 euros per liter.

Increase in price of goods, services means only half of Greeks will go on vacation this summer

The price of gas, along with increased costs for hotels and airline and ferry tickets, means that around half of all Greeks will not go on vacation this summer, according to research conducted by the Business & Retail Association of Greece (SELPE).

Just 13 percent of Greeks surveyed stated that they would go on vacation just as they do each year while 22 percent stated that they would go on holiday but not for as long as usual.

While prices for hotel rooms, rental cars, and other essential aspects of travel have reached highs across Greece, particularly on the Greek islands, they will likely only increase.

They will likely reach their peak in August, when most Greeks go on their summer vacation and the islands are filled with Greek and international tourists.

While in the past many people booked their holiday accommodation for August during the summertime with no problem, prices have spiked so much that people who have not yet planned their trips are left scrambling.

Across many of the most popular islands, such as Mykonos and Santorini, it is impossible to find any accommodation available for under 100 euros ($103) a night. The minimum wage for a full-time worker in Greece sits just over 700 euros.

Inflation in Greece reached 12 percent in the month of June from 10.5 percent in May and 9.1 percent in April, according to data released by Eurostat, the official statistical authority of the European Union announced.

The rate is the highest recorded in Greece in the past 29 years. The last time prices rose at such rapid rates was in December 1993. The Greek statistical authority ELSTAT is expected to announce the national price index on July 8th.

Inflation in the eurozone was 8.6 percent in June, which was up from 8.1 percent in May, according to Eurostat data.