Prices of products in supermarkets in May 2024 are recorded for first time reduced on average -1.25% compared to May 2023, according to a survey by the Consumer Goods Retail Research Institute (IELKA) conducted exclusively in the channel of large supermarket chains.

According to the research, the net decrease in the supermarket chain price index in May 2024 shows that supermarket chain inflation is negative at -1.25% (vs. +1.10% in April, +0.28% in March, + 2.70% in February and +3.00% in January 2024). As noted, the change in May compared to April is mainly due to the continued de-escalation of prices and partly to the effect of seasonality due to Easter, a period during which strong promotions are recorded during the Holy Week period, which in 2023 was in the middle April, while in 2024 in the first week of May and is incorporated into the data of this measurement.

Bigger price cuts recorded in the categories: butter and eggs (-7.50%), stationery, cosmetics and personal hygiene items (-5.62%), fresh fruit and vegetables (-4.04%), cheese (-3.97%) , alcoholic beverages (-3.74%). In dairy, the decreases recorded are the result of both the post-pandemic market normalization and the reduction in producer prices for some products, while products such as butter and eggs benefit from Easter promotions. Fresh fruit and vegetables have benefited from comparatively better weather conditions compared to 2023.

Biggest increases are recorded in the categories: cookies, chocolates, confectionery (+5.85%), fresh fish and seafood (+4.42%), ready meals (+3.13%), food and pet supplies (+3, 05%), waters and soft drinks (+2.79%). Most of these items are affected by the international prices of raw materials and especially the prices of sugar and cocoa.

The reasons attributed to the tendency to hold down product prices in supermarkets are:

  • Gradual deflation of inflation. Prices have been stabilizing in recent months in large grocery stores due to the large volumes of products they carry, economies of scale, their organizational/technological readiness and their private label product range.
  • Better compared to 2023 weather conditions in May 2024. Last year’s rains had significantly increased the cost of fresh fruits and vegetables.
  • Offers and discounts and the seasonality of Easter. Offers and discounts in the organized retail channel are more in number, intensity and percentage discount, which affects the final prices of the products. Many of the Easter offers were implemented in 2024 in May and 2023 in April, which artificially led to higher prices in April, but also significantly lower prices in May.
  • Government institutional interventions. Supermarket chains operate in a strict institutional framework (e.g. Prohibition of promotions in case of price increases 6969/2024).
  • The de-escalation of the prices of raw materials in the previous months in the international markets and the normalization of the market. International indices of food raw materials (e.g. FAO Food Price Index) record a decrease in the first months of 2024.
  • High stock turnover rate. Price containment occurs much faster at large outlets due to higher inventory turnover. That is, they sell their stock faster and make new purchases to replenish stocks more quickly.
  • Impact of private label products. Sales shares of private label products are higher in large supermarket chains due to a wider code range.
  • “For the first time, the prices of products in supermarkets are reduced in May
    (-1.25%) compared to the corresponding month last year, while also for the first time 14 of the 23 product categories recorded a decrease.

On the occasion of the IELKA investigation, the Minister of Development Kostas Skrekas, stated: “”For the first time the prices of products in supermarkets in May are reduced (-1.25%) compared to the corresponding month last year, while also for the first time 14 of the 23 product categories recorded a decrease.

The battle for interception accuracy is ongoing. This is precisely why the trend of falling prices in supermarkets, as recorded in the IELKA survey, proves that the measures are having gradual effects, creating the conditions for further de-escalation.

Greece has taken the most and most drastic measures of any other European country and these are beginning to bear fruit despite the negative and sterile criticism of the opposition. But we are interested in the benefit of consumers and their families. That’s why we don’t stop, we keep going. With measures that address the root of the problem and will have a lasting effect.”