Greek Households Squeezed as Soaring Costs Outpace Purchasing Power

Food prices successful Greece person climbed 22% since 2022. Credit: AMNA

Recent information and user surveys uncover that skyrocketing prices for indispensable goods are forcing households to drastically standard backmost connected spending. According to NielsenIQ’s yearly “Shopper Trends” conference, portion the measurement of goods purchased has remained mostly stagnant implicit the past 2 decades, mean prices person surged by astir 30%.

This inflationary unit is mostly attributed to persistent proviso concatenation disruptions and energy-driven ostentation fueled by the struggle successful Ukraine and the ongoing Middle East crisis. Data from the Hellenic Statistical Authority (ELSTAT) indicates that nutrient prices unsocial person climbed 22% since 2022, representing a staggering 38% summation compared to 2020 levels.

Food insecurity successful Greece

Data from ELSTAT amusement the grade of nutrient insecurity successful Greece and item the harsh world galore Greek households look amid the ongoing cost-of-living crisis, specifically detailing the fig of radical struggling to secure adequate and prime food.

According to the ELSTAT survey:

• 7% of the colonisation successful Greece (up from 6.5% successful the erstwhile report) reported experiencing mean oregon terrible nutrient insecurity
• 1.6% (up from 1.4% previously) experienced terrible insecurity, meaning determination were times they went wholly without nutrient owed to a deficiency of wealth oregon different resources

Between 2019 and 2024, the complaint of mean oregon terrible nutrient insecurity successful Greece fluctuated betwixt 6% and 8%, portion terrible insecurity remained dependable astatine astir 1.5%.

In response, consumers are fundamentally altering their habits. Research by Circana shows a important diminution successful spending connected eating out, travel, clothing, and entertainment. Price sensitivity has present overtaken marque loyalty: 60% of shoppers prioritize discounted items, implicit 40% favour private-label brands, and a immense bulk present prosecute successful rigorous terms comparisons earlier each purchase.

The Greek paradox

The paradox is that, arsenic the Greek authorities boasts astir Greece’s economical growth, Greek citizens stay astatine the “bottom of Europe” successful presumption of existent purchasing power. Despite the ongoing economical recovery, Greeks are becoming poorer, according to the latest OECD data.

While the Greek economy’s upturn has somewhat raised surviving standards compared to the EU average, this betterment is minimal. It has not lifted Greece from its presumption arsenic the poorest state successful the Eurozone, lone up of Bulgaria.

It is worthy noting that until 2009, Greece’s GDP per capita was adjacent to the EU average. However, since then, 10 countries person surpassed Greece successful surviving standards.