Greece moves to lower supermarket food prices after ending profit‑margin cap

The Greek government will lift the profit‑margin ceiling that has limited price increases on basic supermarket goods. Starting in September, the plan targets specific high‑weight items—such as dairy, cheese, cereals, pasta, processed meats and personal‑care products—identified by barcode codes. Retail chains and suppliers will absorb cost pressures where possible, with expected price cuts ranging from 5 % to 16 % depending on the product and retailer.

The initiative follows a recent meeting of the government, food‑industry groups and supermarket representatives, and will be overseen by the Ministry of Development. Data from market‑analysis firms will be used to monitor the impact. While officials say competition will keep prices stable, some analysts warn that the removal of the cap could also give retailers more flexibility to raise prices if supply costs rise further.

The policy aims to reinforce the recent decline in supermarket inflation—1.14 % in May—and protect household purchasing power as Greece continues to grapples with high living costs.