Rising trend in prices of basic foods appears to be abating

Although two in 10 Greek consumers have stopped buying bread in the last five years, bakery prices rose 6.76 percent, belying expectations that price liberalization would lead to a 30 percent drop. The rise is partly attributed to the higher costs of electricity, oil and flour, as well to more property taxes. However, it appears that prices are now starting to fall.

Data released by the Hellenic Statistical Authority (ELSTAT) and the Bank of Greece show that the prices of basic food items in small to midsized shops rose 6.3 percent between 2008 and 2013, with prices of imported goods growing even more. The price of sugar was up 21.5 percent, eggs 19.0 percent, rice 13.9 percent and chocolate 10.9 percent.

Provisional data suggest that food prices as a whole fell in the first quarter of 2013.