Price cuts have taken effect
Since Friday, infant formula has been between 5% and 16% cheaper than it was up until Thursday, while a series of other commodities also saw their retail prices drop as a result of the ceiling imposed on gross profit margins by the Development Ministry.
The reductions in the price lists for specific products went to shelf prices as early as the first day of implementation of the new anti-inflation measures.
Despite the reductions, of course, baby formula still costs more in Greece compared to other European countries.
From the price survey carried out by Kathimerini on baby formula prices, it stems that in 10 infant formula codes prices were down from 4.99% to 16.41% overnight. According to sources, price lists with reductions of even 28% have been sent to the ministry from a company that sells baby formula from pharmacies and physical and electronic stores.
In addition, due to the measure reducing suppliers’ allowances to retailers and passing on the benefit to list prices, consumers will see prices reduced by 15% on average across 3,900 product codes in the personal care, detergents and cleaning products categories. Therefore, a pack of baby diapers from a leading company (50 pcs), which until Thursday cost 12.45 euros, as of Friday costs €10.40 – i.e. a decrease of 16.47%.
According to the general manager of the supermarket association, Apostolos Petalas, in large stores the price changes had passed to 100% of the product codes, while at smaller points of sale the process is expected to be completed within the next few days.
The success of the measure, as well as whether food inflation remains at high levels, will depend on whether the ministry extends this latest measure to basic food categories.
For now, the ministry expects at least a price stabilization in basic food categories, as the three-month block on offers in case anyone implements price hikes after January 10, 2024 has prevented several companies from going ahead with price increases. Kathimerini understands that price lists have arrived at supermarkets including further price reductions in 300 product codes.
