G. Chatzitheodosiou: Neither households nor businesses can withstand such inflation

“Neither households nor businesses can withstand such inflation,” said the president of the Athens Chamber of Commerce, Giannis Chatzitheodosiou, commenting on data released by the Hellenic Statistical Authority (ELSTAT).

Specifically, as the president states:

“One negative record after another is breaking inflation, with the result that the pressures exerted on households and businesses are now suffocating.

According to data released by the Hellenic Statistical Authority (ELSTAT), inflation rose to 11.3% in May, from 10.2% in April. This is a development that confirms the estimates of the Athens Chamber of Commerce, as we had seen the signs of the market. And we believe that for June inflation may exceed 12%.

The result of inflationary pressures is large increases in almost all products and services, even basic goods.

In just one year, ie from May 2021 to May 2022, electricity became more expensive by 80.2%, gas by 172.7%, heating oil by 65.1%, fuels and lubricants 36.6%, while bread and cereals have risen in price by 13.4%, meat by 13.8%, dairy and eggs by 14.1%, oils and fats by 23.2%, fruit by 10.8%, vegetables by 13%.

The housewife’s basket can no longer be filled with the incomes of the majority of citizens, businesses – especially small and medium-sized – are unable to meet obligations such as increased operating costs, the market is effectively underperforming as consumption has decreased and light is not visible from nowhere.

The government implemented some measures trying to create embankments to deal with inflationary pressures, but the reality itself proved to be insufficient.

As the situation worsens, the risks of a dramatic decline in business, the loss of hundreds of thousands of jobs, the “eruption” of private debt, and even the outbreak of strong social reactions are increasing.

The government must also protect the companies that are struggling to stay afloat and of course the households that do not see any optimistic prospects in front of them and that have begun to be deprived of even basic goods.

The Athens Chamber of Commerce reinstates its proposal for a reduction in taxes, such as VAT on food and VAT on fuel. It’s the only way to keep society afloat at this critical time. We hear what the government is saying about the need to stay true to the budget, but now we are all in a state of emergency.

The hope for stimulating the Greek economy through a successful tourist season is real, as is the fact that our partners in the EU finally understand that additional support measures are needed.

But even if everything goes well in these fields, it will take some time to see any positive results. So the immediate support of the society is more than necessary. The reason is simple. There are no other strengths. Neither in households, nor in businesses. “And this is something that the government should not ignore.”