[REVISION HISTORY]

Greece economy: rising producer prices and food inflation

25 recorded revisions of this situation.

What changed

2026-10-23 10:21 UTC → 2026-10-26 07:14 UTC · added ~~removed~~

Greece continues to navigate volatile inflation driven by energy and food costs. While the government’s August 2026 initiative to reduce mass-consumption goods prices saw a marginal 0.15% decrease in supermarket costs, many reductions fell short of the 5% target. By September 2026, inflation rose to approximately 5%, fueled by sharp increases in natural gas, heating oil, electricity, and fuel. New economic data indicates intensifying inflationary pressures. In August 2026, the General Producer Price Index saw a substantial annual increase of 14.9%, ~~up from 11.8% the previous month,~~ driven largely by a 29.7% surge in the index for external markets. The services sector also faced pressure, with the Producer Price Index rising 5.9% annually in the second quarter of 2026, led by significant increases in architectural and engineering services at 17.8% and catering at 9.8%. Food prices are expected to rise further, with some products potentially increasing by up to 15%. ~~Since mid-September, major suppliers have submitted new price lists affecting over 390 product codes, including dairy, beef, bakery items, and cleaning supplies. These hikes are attributed~~ Recent data highlights the social impact of these costs. In 2025, food insecurity rose to ~~rising costs for raw materials, packaging, energy, and transportation, alongside geopolitical tensions~~ 7.5% of the population, with severe food insecurity reaching 1.7%—the highest level since 2019. This economic pressure has shifted consumer habits; a study by IELKA shows a decline in the ~~Middle East.~~ consumption of beef, olive oil, and fish, while poultry consumption has risen by 31.9% as families seek cheaper protein. In response, the Ministry of Development has ~~confirmed the extension of~~ extended the National Price Reduction Initiative through December 31, ~~2026. The upcoming phase will focus~~ 2026, transitioning from school-related products to holiday-themed items. Development Minister Takis Theodorikakos also announced the extension of profit margin caps on ~~a revised list~~ thousands of ~~approximately 1,000~~ supermarket products. ~~Additionally, a~~ To support the festive season, the ‘Holidays for All’ intervention ~~is being prepared for mid-December, aiming~~ aims to ~~reduce prices by~~ provide discounts of up to 25% on ~~high-demand festive items~~ staples like meat, cheese, and ~~traditional~~ sweets. Additionally, a new digital application, ‘My kataggelies’, will allow consumers to report unjustified price increases.

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