The prices of a typical basket of supermarket products for a household are lower in Greece than in key European markets (France, England, Italy, Spain), but higher than in Portugal, according to the conclusions of a study by the Consumer Goods Retail Research Institute (IELKA).
The IELKA study compares prices based on data from price comparison platforms in each country, but also on prices charged by supermarket chains in a typical household basket of products of the organized food retail trade (supermarket) in Greece, in September 2023 and respectively in France , in the UK, Spain, Italy and Portugal. It is noted that the price comparison is made with and without the value of VAT, which differs in each country.
Detailed prices in 44 product categories
In more detail, prices were compared in a total of 44 product categories and specifically 20 product subcategories that make up a typical shopping basket, as it has been shaped in this repeated survey from 2012 to the present. In addition, 19 product sub-categories joining the household basket from November 2022 and five additional product sub-categories joining the household basket from March 2023. These product sub-categories are examined from a significant sample of over 5,000 product prices and 30 different super chains markets in the six countries in total, to calculate the average prices with samples from valid price comparison sites in Greece and abroad, but also from supermarket chains. The figures include both prices of products on sale and private label products in each country.
In particular, the comparison of average basket prices shows that three European countries have a significantly more expensive average basket than Greece (18% France, 11% United Kingdom, 12% Italy), Spain is at the same level as Greece, while Portugal is 6% cheaper than Greece.
With VAT calculation
The picture of the results changes significantly when we remove the relevant VAT per country to understand the real prices of supermarket products. The comparison of the baskets in this case shows that European countries have a more expensive average basket than Greece, namely France by 26%, the United Kingdom by 20%, Italy by 20%, Spain by 7%, while Portugal remains cheaper by 5%.
This, according to IELKA, is a result of the difference in the low VAT per country (this is the VAT referred to food and beverages). In Greece this VAT is 13%. VAT is significantly higher than the UK (0% or 5%) and France (10% and 5.5%), Spain (10% and 4%), Portugal (13% and 6%), Italy (5% and 4%), but also most EU countries. The main difference is that food which in Greece is subject to the high VAT rate with 24% in the rest of the countries is subject to the low VAT rate, which is also lower than the Greek with 6%, 5.5%, 4% or even 0%. It is noted that the effect of special consumption taxes (eg coffee) cannot be included in the above figures.
What other factors are taken into account
In addition to VAT, factors that should be taken into account when comparing prices between different countries are:
-Natural disasters due to climate change
-The country’s distance from the production centers of central and western Europe and the corresponding costs
-The cost of energy and transport
-The complexity of the geography of each country (eg road network, islands etc.)
-The size of the market and corresponding economies of scale in product procurement
-The export-import balance in relation to food and its raw materials
-The various production costs (energy, raw materials, salary costs, financial costs, bureaucracy)
-Productivity of industry and retail trade in each country
-Consumer habits and purchasing power in each country
-The amount of taxation in each country.
Source: Athenian-Macedonian News Agency
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– How do Greece’s supermarket prices compare to those of other European countries?
Table of Contents
Greece’s Supermarket Prices: A Study Reveals Surprising Trends Compared to European Counterparts
When it comes to the cost of living, one of the most significant expenses for households is the price of everyday essentials, including groceries. A recent study by the Consumer Goods Retail Research Institute (IELKA) has shed light on the prices of a typical basket of supermarket products in Greece compared to key European markets. The results are intriguing, to say the least.
Lower Prices in Greece Compared to Major European Markets
According to the IELKA study, the prices of a typical household basket of products are lower in Greece than in France, England, Italy, and Spain. However, Portugal stands out as an exception, with prices being 6% lower than in Greece. The study compared prices in 44 product categories, including 20 product subcategories that make up a typical shopping basket, as well as 19 additional sub-categories introduced in November 2022 and five more introduced in March 2023.
Detailed Comparison of Prices
The study analyzed prices in a significant sample of over 5,000 product prices from 30 different supermarket chains across the six countries. The prices included both products on sale and private label products in each country. The comparison of average basket prices reveals that three European countries have a significantly more expensive average basket than Greece: France (18%), the United Kingdom (11%), and Italy (12%). Spain’s prices are on par with Greece, while Portugal is the only country with lower prices.
The Impact of VAT Calculation
When the study factored in the respective VAT rates of each country, the results changed dramatically. Without VAT, the comparison of the baskets shows that European countries have a more expensive average basket than Greece: France (26%), the United Kingdom (20%), Italy (20%), Spain (7%), and Portugal (5%). This is largely due to the difference in VAT rates, with Greece having a 13% VAT rate on food and beverages, while other countries have lower rates.
Other Factors to Consider
In addition to VAT, other factors that influence prices between countries include:
Natural disasters due to climate change
A country’s distance from production centers in central and western Europe, and the corresponding costs
The cost of energy and transportation
The complexity of supply chains
Government policies and regulations
Understanding the Results
The study’s findings highlight the importance of considering various factors when comparing prices between countries. While Greece may have lower prices than some European markets, other factors such as VAT rates, transportation costs, and government policies can significantly impact the final cost of goods.
Conclusion
The IELKA study provides valuable insights into the prices of supermarket products in Greece and its European counterparts. While Greece may not have the lowest prices in all categories, it is still a relatively affordable option compared to some of its European neighbors. As consumers, it is essential to consider the various factors that influence prices and make informed decisions when making purchasing decisions.
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– What are the primary factors affecting supermarket prices in Greece compared to other European countries?
Greece’s Supermarket Prices: A Comparative Analysis with European Markets
When it comes to the cost of living, one of the most significant expenses for households is the weekly grocery bill. A recent study by the Consumer Goods Retail Research Institute (IELKA) has shed light on the prices of a typical basket of supermarket products in Greece and how they compare to key European markets. The results are intriguing, and this article will dive into the details of the study and its findings.
Lower Prices in Greece Compared to Key European Markets
According to the IELKA study, the prices of a typical basket of supermarket products for a household in Greece are lower than in France, England, Italy, and Spain. However, they are higher than in Portugal. This is based on data from price comparison platforms in each country, as well as prices charged by supermarket chains in Greece and the other five countries studied.
Product Categories and Subcategories
The study compared prices in 44 product categories and 20 product subcategories that make up a typical shopping basket. These categories were chosen to reflect the average household’s weekly grocery needs. The prices of over 5,000 products from 30 different supermarket chains in the six countries were sampled to calculate the average prices. Both prices of products on sale and private label products in each country were included in the study.
Average Basket Prices sans VAT
When comparing the average basket prices without VAT, three European countries have a significantly more expensive average basket than Greece: France (18%), the United Kingdom (11%), and Italy (12%). Spain is at the same level as Greece, while Portugal’s basket is 6% cheaper.
The Impact of VAT on Prices
The difference in VAT rates per country significantly affects the prices of supermarket products. When VAT is removed, the picture changes dramatically. France’s average basket is 26% more expensive than Greece’s, the United Kingdom’s is 20% more expensive, Italy’s is 20% more expensive, and Spain’s is 7% more expensive. Portugal’s basket remains 5% cheaper.
VAT Rates in Different Countries
The disparity in VAT rates is a significant factor in the price difference. In Greece, the VAT rate for food and beverages is 13%. In contrast, the UK has a 0% or 5% VAT rate, France has a 10% and 5.5% rate, Spain has a 10% and 4% rate, Portugal has a 13% and 6% rate, and Italy has a 5% and 4% rate. This difference in VAT rates is mainly due to the classification of certain food items, such as processed foods, which are subject to a higher VAT rate in Greece.
Other Factors Affecting Prices
In addition to VAT, several other factors contribute to the price disparity between countries. These include:
Natural disasters due to climate change
The country’s distance from production centers in central and western Europe
Energy and transport costs
The complexity of the geography of each country
The size of the market and economies of scale in product procurement
The export-import balance in relation to food and raw materials
* Various production costs (energy, raw materials, salaries, etc.)
Conclusion
The IELKA study provides valuable insights into the prices of supermarket products in Greece and how they compare to key European markets. While Greece’s prices may be lower than some of its European counterparts, they are still higher than Portugal’s. The study highlights the importance of considering VAT rates, production costs, and other factors when comparing prices between countries.
Keywords: supermarket prices, Greece, European markets, VAT rates, price comparison, household expenses, cost of living.
Meta Description: Discover how Greece’s supermarket prices compare to key European markets. Learn about the factors that affect prices, including VAT rates, production costs, and more.
Optimized Title: Greece’s Supermarket Prices: A Comparative Analysis with European Markets
