The National Price Reduction Initiative reaches supermarket shelves today, with more than 1,660 product codes already included in the agreement between the government and the market, and the average reduction standing at around 7%. Final figures on participation and the extent of the reductions are expected to be announced by noon by Development Minister Takis Theodorikakos and the president of the Independent Authority for Market Control and Consumer Protection, Despina Tsangari.

For the consumer, the change will be visible from today directly on the shelf through the special “Price Reduction — National Initiative in Practice” label. The price tag will show the new price and carry the initiative’s logo, but not the previous price or the percentage reduction. More detailed information will be available digitally through the “PosoKanei” platform, where participating businesses, product codes and the reductions applied will be listed. For branded products, a range of reductions will be shown, as the final discount may vary between supermarket chains.

How deep are the reductions?

The latest available picture before the measure comes into effect shows that around 900 are branded product codes, for which the average reduction is close to 7%. Reductions start at 5%, while for some products they reach as much as 30%.

The list also includes more than 450 school-supply codes, with an average reduction of around 10%, approximately 250 private-label products with a 7% reduction, as well as more than 60 meat codes, where the average reduction stands at 7.2%. The latter category includes both Greek and imported meat, including beef.

Market participation has expanded significantly. More than 90 suppliers, 12 supermarket chains and three toy and school-supply chains have joined the initiative.

The second reduction

For branded products, however, the roughly 7% figure does not necessarily reflect the full reduction the consumer will see. An additional discount from the retail chain may be added to the reduction offered by the supplier, and this is not the same across all businesses. As a result, the same branded product code may appear with a different final reduction from one supermarket to another.

Up to four months

The agreement does not concern a short-term promotional campaign. The reductions will remain in place for between two and four months, depending on the business and the product code. For businesses that have committed to two months, it has been agreed that new product codes will be added during the following two-month period, while there are products for which the reduced price will be maintained for four months.

Behind today’s implementation of the initiative is a round of consultations that began at the start of the summer, when the government, industry and retail sector initially agreed to freeze prices for July and August and subsequently to draw up a broader list of products at reduced prices. The scope of the initiative expanded significantly along the way: from the 1,150 product codes presented to the Cabinet a few days ago, the latest count now exceeds 1,660.

The launch of the measure also coincides with the first indications of easing pressure on food prices. Ms Tsangari has described the initial signals from August as particularly positive, estimating that food inflation could move into negative territory. Checks carried out so far have not found price increases in branded products in July and August, with the exception of one company, which is not participating in the initiative and which the Authority has already contacted.

The next challenge is now to translate the percentage reductions into a real benefit for households. Today’s announcements are expected to include, alongside the final picture of participation, an estimate of the monthly amount represented by the reductions on the products included in the initiative.