Addressing the cost-of-living crisis remains the top priority of Greece’s economic policy over the coming two months, with the government intensifying talks with market stakeholders ahead of the September rollout of the second phase of its supermarket pricing agreement. Under this plan, price reductions on essential goods will be introduced across major retail chains.
Key Meeting Ahead of September Launch
A pivotal meeting is scheduled for Thursday, 9 July 2026, between Development Minister Takis Theodorikakos and representatives from the retail and food supply sectors. The aim is to finalise the list of products eligible for price cuts — a critical step in preparing for implementation starting in September. Minister Theodorikakos stated the meeting is intended to align all relevant actors to ensure concrete, consumer-focused outcomes.
Two Major Measures Already Announced
This effort follows two recent policy announcements that underscore the government’s focus on affordability. First, the Development Ministry confirmed an agreement with market participants to lower prices on basic goods beginning in September. Second, Labour Minister Nikē Kerameōs announced the cancellation of planned pension cuts for widows — a provision originally included in Greece’s third bailout memorandum.
Broader Economic Priorities
Beyond tackling inflation, the government’s immediate economic agenda includes strengthening household incomes and completing the implementation of Greece’s Recovery and Resilience Facility (RRF) — commonly known as the Recovery Fund. Officials stress that stabilising prices is the foundational step before advancing broader income support measures.
Phased Implementation of Pricing Agreement
The current focus is on fully implementing Phase One of the pricing agreement — which commits retailers to maintaining stable shelf prices — as a prerequisite for launching Phase Two. The latter, set for September, will introduce targeted price reductions across key consumer categories in supermarkets.
Inflation Shows Early Signs of Easing
Preliminary Eurostat data indicate that Greece’s annual inflation rate fell by one percentage point in July, dropping to 3.9% from 4.9% in May. While the reasons behind this decline are multifaceted, officials note it reflects early signs of market adjustment — including shifts linked to changing global shipping dynamics, such as disruptions in the Strait of Hormuz.
Recovery Fund Progress
The Recovery Fund remains the most pressing implementation front. All milestones and targets must be completed by the end of August. Deputy Finance Minister Nikos Papathanasis reaffirmed this week that no euro of the fund will go unused. According to official figures, €24.6 billion — or 68% of the total Recovery Fund — has already been disbursed into the Greek economy in under five years. This amount represents 10.9% of Greece’s 2023 GDP, placing the country first among EU member states in terms of the relative economic impact of RRF disbursements.
Papathanasis added that Greece’s national recovery plan is back-loaded by design — meaning many projects naturally reach maturity later in the timeline — making the current pace of implementation both expected and sustainable.