ATHENS – While Greece’s economy has significantly rebounded from the 2010-18 economic and austerity crisis and regained investment-grade status, many Greek households continue to struggle with high food prices, leading to cutbacks in purchases.

Despite foreign investors being attracted with incentives such as tax breaks, Greeks remain among the most heavily taxed and underpaid in the European Union. Meanwhile, food prices—although beginning to ease—remain high.

Prime Minister Kyriakos Mitsotakis had previously called on the EU to address profiteering by international conglomerates in the food sector, although domestic companies were also charging significantly more for products, particularly olive oil.

This price increase has been attributed to inflation and climate change, which reduced yields before the market began stabilizing. However, olive oil prices remain so high in Greece—famous for its production—that many consumers have turned to alternatives.

A survey by the country’s statistics agency, ELSTAT, found that 2023 marked the third consecutive year of food price hikes, with the average household spending more than 20% of its income at supermarkets.

When factoring in housing costs, the average household allocated 34.1% of its income to food and shelter, with the poorest households spending as much as 55.8% of their income on these essentials, despite the overall economic expansion.

The average annual household expenditure for purchases in 2023 was €20,223.36 ($22,589.98), or €1,685.28 ($1,882.17) per month, representing a 5.3% increase compared to 2022.

For individuals, average annual spending in 2023 was €8,358.24 ($9,334.70), an 11.2% increase from the previous year’s €7,516.32 ($8,394.42). This translated to an additional €841.92 ($940.28) per person annually.

Although households spent more on basics, they consumed less, with the higher costs leading to reduced quantities. This resulted in a decline in supermarket volume sales, even as profits remained steady.

Consumption of basic staples fell: rice by 10.7%, meat by 6.1%, eggs by 5.3%, milk and pasta by 5.2%, bread by 4.3%, fruit by 4%, and vegetables by 3.4%, even with access to open-air markets.