The massive increases in products that triggered inflation

By George Lampiris

Continuing upward trends are recorded in individual categories of goods as they are reflected in the Eurostat data for May. In particular, food continues its upward path with inflation at the level of 11% for the fifth month of the year that ended just yesterday and compared to the corresponding May last year. Recall that food inflation was at the level of 8.9% in April based on the Eurostat data. In terms of the services sector, what Eurostat records is inflation at the level of 3.8% from 2.5% in April.

Spyros Theodoropoulos: We thought that what we see today would be temporary

In a communication we had with the businessman, Spyros Theodoropoulos, he states characteristically: “The numbers are real. The point is that the cost pressures continue and I am worried that they will continue further. So far the intensity of inflation in food has been more moderate because and The supermarkets tried to contain the price increases but the companies also restrained themselves. We assumed that the data we see today in front of us could be temporary, but they have become permanent. “We are absorbing some of the increases, while at the same time it is a fact that the results of the companies will have nothing to do with 2021”.

At 60.9% energy inflation in Greece – At 10.7% the general index

At the same time, energy inflation rose from 57.6% in April to 60.9% in May. In terms of industrial products, inflation in our country rose to 3.5% from 2.8% last month. In terms of the general index, it moved in Greece at the level of 10.7% from 9.1% in April. Greece’s share is behind 20.1% of Estonia, 18.5% of Lithuania, 16.4% of Latvia, and 11.8% of Slovakia.

A high-ranking executive of one of the largest dairy companies in Greece, who wishes to remain anonymous, states: “The situation has escaped and does not stop. Milk is rising day by day. I have been in the market for 40 years and I have never seen such a picture. The situation We will make a new increase in our products because the raw material, milk, month by month rises by 2% -3%. The market in milk has fallen in sales by 12% -13% in volume. respectively has lost 15% of its sales in kilos in April but also yellow cheeses.

At 8% the fall in sales volume in April in supermarkets – At 4% -5% in May

In Greek supermarkets, the decline in sales in April was at the level of 8% compared to the same month last year, while in May compared to the corresponding month last year sales decreased although to a lesser extent compared to April this year. , as a result of the reduction in consumption. The drop in sales in volume for May is estimated at the levels of 4% to 5%, something that was recently mentioned by the CEO of the Metro group, Aristotelis Panteliadis.

Massive increases after Easter

Market information indicates that most Greek supermarkets have asked suppliers and industry to keep product increases until Easter, so that there is no turmoil in the Easter market. The same sources point out that a large wave of increases, especially in food, was recorded after Easter, something that is now strongly visible on the shelves of the chains.

A difficult year is coming for the electrical and electronics sector – At -5% in pieces in the five months of ’22

Also of interest is the fact that the retail market of electrical and electronic items is significantly affected at this time, after the two years of the previous pandemic where the industry as a whole was favored. According to the CEO of the electrical and electronics chain, Expert, Elias Papadopoulos, the market expects the start of the subsidy for the replacement of energy consuming appliances – air conditioners, refrigerators, freezers – with the program being significantly delayed. However, it is estimated that its implementation will begin on June 13.

5% drop in sales of electrical and electronic units in the five months

In value is the industry that is up in both May and five months with 5% -10% which is due to all categories, price increases and a large part of air conditioner sales that were up compared to last year in its first five months 2022, due to the fact that the stores were closed last year. In parts, the market is down 5% in five months with the exception of air conditioners that have a positive sign and large white appliances such as washing machines, refrigerators and kitchens that are products that move all year round and are an essential item. However, a new increase is imminent in July in all categories such as white devices, while televisions also change models and are presented as codes of new technology. Therefore they will have an increased price and their price will gradually decrease as they spend time in the market.

The key effect of the euro-dollar exchange rate

Mr. Papadopoulos states that the increases that were planned to pass in the specific market in August, in the end this will happen a month earlier due to seasonality and increased transport. It is also strongly influenced by the euro-dollar exchange rate, where 1 euro corresponds to about 1.07 dollars, which affects the market.