ATHENS, Nov. 5 (Xinhua) -- Consumers in Greece are getting headaches this year when they fill their baskets at the grocery shop or open-air markets with the ingredients of the famous Greek salad and fruits for the typical Mediterranean diet.
Greece's annual inflation rate in September stood at 1.6 percent, but in the food sector, the inflation reached 9.4 percent, according to the Hellenic Statistical Authority (ELSTAT). Prices of fresh vegetables and fruits were 24.7 percent and 15.7 higher respectively in September compared to the same period in 2022, while cheeses have been 12.8 percent more expensive.
The reason for the problem does not seem to be increased production costs, or September's catastrophic floods in Thessaly in central Greece, a region with significant agricultural production, but rather faulty competition in the local market that allows space for profiteering, according to officials and experts.
To address the problem, the government announced several new measures to combat high prices and profiteering a few days ago. For example, all supermarket companies will be obliged to report to the authorities the information regarding price increases. Meanwhile, inspections over profit margins will increase.
"The fight against overpricing will not stop," said Development Minister Kostas Skrekas recently.
Production costs of fruits and vegetables increased in 2022 to early 2023 by an average of 35 percent, and they have been partially absorbed by producers, but in the past six months, "the enormous hikes in retail prices in the local market were not justified," George Polychronakis, special counselor of INCOFRUIT-HELLAS, the Association of Greek Export and Consignment Enterprises for Fruits, Vegetables and Juices, told Xinhua.
The destruction in Thessaly created problems only for a few weeks, Polychronakis noted.
Domestic production of fruits and vegetables amounts to 8 million tons on average per year. Greece exports approximately 3 million tons of fruits and vegetables, and the rest of the production is consumed in the country, he said.
"So, our production is sufficient, but strategic planning is needed to make a better distribution (throughout the year) and to adapt our production to demand and seasonal consumption," he said, explaining that demand increases drastically during the summer tourist season, when Greece receives tens of millions of visitors.
"Mostly we need monitoring of over-profits and over-pricing of products in retail sales in particular," Polychronakis added. ■