Today, Monday, 29 June, marks a pivotal moment in Greece’s efforts to rein in supermarket prices. A high-level meeting convened by Prime Minister Kyriakos Mitsotakis is set to bring together key stakeholders — including the Hellenic Federation of Enterprises (SEV), the Hellenic Federation of Food Industries (SEVT), and the Union of Supermarkets of Greece — at the Maximos Mansion. The talks come just one day before the expiry of the government’s retail gross margin cap, scheduled to end on 30 June.
A Shift from Regulation to Agreement
The government aims to move beyond emergency interventions and regulatory caps toward a sustainable, market-based understanding with food producers and supermarket chains — what officials describe as a ‘gentlemen’s agreement’. Spearheaded by the Ministry of Development, the goal is concrete, visible price reductions on everyday essentials: items that regularly fill Greek households’ shopping baskets.
The current margin cap has served as a key lever, limiting retailers’ ability to raise gross margins above reference-period levels. According to Development Minister Takis Theodorikakos, the measure contributed to price cuts on approximately 2,000 products. Yet the next challenge is broader: ensuring those reductions translate into tangible relief for consumers — not just temporary promotions or narrow discounts.
Sticking Points and Social Pressure
Food remains one of the most sensitive cost categories for Greek families. While some price categories have eased, many basic necessities remain significantly more expensive than pre-crisis levels. Shelf-price comparisons continue to strain household budgets.
This pressure is reflected in broader economic data. According to INE/GSEE figures on workers’ purchasing power, the average real annual wage in 2025 stood at €14,998 — up just 1.3% from 2024, but still 31% lower than in 2009. In nominal terms, the average annual wage reached €18,134 — yet remains 12% below pre-crisis levels. So despite recent wage increases and falling unemployment, rising food prices have sharply eroded their impact.
At today’s meeting, discussions are expected to focus on two central questions: first, how much room food manufacturers have to lower wholesale prices; and second, how effectively supermarkets can pass those savings on to shoppers. For the government, the ultimate test is not just an announcement — but measurable, lasting relief at the checkout.