Greek Govt Halts Profit‑Margin Cap, Freezes Reduced Food Prices Through Summer

At a meeting in the Maximos Palace, Prime Minister Kyriakos Mitsotakis, Deputy PM Kostas Chatzidakis and Development Minister Takis Theodorikakos announced that the emergency profit‑margin cap on basic food items will end on 30 June and will not be extended. The government secured an agreement with the food‑industry federations and supermarket chains to keep the price reductions already applied to roughly 2 000 product codes – an average cut of about 6 % – unchanged for the two summer months of July and August.

The ministers stressed that “the handling of the cost‑of‑living and price‑spike issue for many compatriots is a clear priority for the government and the Prime Minister.” They also linked the expected easing of inflation to the recent de‑escalation of oil prices following the end of the Middle‑East conflict. A broader “national social agreement” is being prepared for implementation from September, aimed at a “drastic” reduction of prices on core consumer goods, with targets of more than a 5 % cut. The new Independent Authority for Market Control and Consumer Protection will monitor compliance, and the government warned that any unjustified price hikes will be scrutinised.

Overall, the agreement seeks to stabilize household budgets during the summer while preparing a longer‑term framework for lower food prices.