Market is flooded with price increases
The course of food prices is now in uncharted waters, as since last week two more factors have been added that are expected to further strengthen inflationary pressures: the floods in Thessaly that have affected a large part of crop and animal production and the days-long closure of the Athens-Thessaloniki national highway, without the railway being an alternative.
There are already phenomena, albeit isolated for the time being, of hikes in retail prices, but these are expected to intensify soon as the wholesale prices of several vegetables have been on a steady upward course in recent days.
According to the latest data available from the Central Markets and Fisheries Organization (OKAA), the prices of tomatoes, pumpkins, cucumbers, lettuce and green beans were significantly higher on Thursday compared to a week earlier.
For example, the minimum price for cucumbers doubled compared to September 7, to 0.60 euros per pair from €0.30. Domestic tomatoes are selling from €1.30 to €1.80 per kilo, while the price range last week was €1-1.40/kg. The phenomenon of profiteering, especially in Attica, which is mainly supplied by neighboring Marathonas and Megara, was also denounced in a statement by the Hellenic Federation of Associations of Producers of Agricultural Products and Market Sellers.
The problem is that even before the devastating storm Daniel, retail food prices were at extremely high levels, as inflation data for August showed. At the same time, the jump in producer prices in a series of products in July presupposes very significant price increases not only in fresh fruit and vegetables – after all, these were already reflected in consumer prices in July and August – but also in a series of processed foods. An aggravating factor is the continuous increase in fuel prices, increasing the already high transport costs.
The output price index data for the month of July gives a foretaste – a very bitter one – of what is to come, regardless of any effects of the recent bad weather: Compared to the corresponding index for July 2022, the general index of output prices in agriculture-livestock (without subsidies) for the month of July 2023 showed a considerable increase of 28.7%.
