Progress in behind-the-scenes talks between the government and market players is considered advanced, with the objective of securing meaningful price cuts in essential household products.

The meeting will include the Prime Minister, the Minister for Development Takis Theodorikakos, and the head of the Independent Consumer Protection Authority Despoina Tsangari, alongside business representatives: SEV President Spyros Theodoropoulos, Ioannis Giotis of the Hellenic Food Industries Association (SEVT), and Ioannis Masoutis of the Hellenic Supermarket Association.

It is recalled that following the announcement of the end of hostilities between the US and Iran and the ceasefire memorandum, Prime Minister Mitsotakis sent a clear message to the market that international price reductions should be reflected in domestic retail prices. Food prices remain perhaps the government’s most significant “thorn in the side”, as they offset wage increases due to the high cost of living.

The key negotiating tool remains the cap on profit margins, which is also set to expire at the end of June. While its expiry is considered certain for fuels—as is the end of the diesel subsidy framework—the discussion on food products remains open.

According to information reported by protothema.gr, it is considered certain that from 1 September there will be a broad repricing of products by the market within the framework of the “gentlemen’s agreement”. However, the government is pushing for reductions to be felt as early as July, while keeping open the option of extending the profit cap as a deterrent measure if necessary.

Market sources suggest a possible compromise point, given that businesses are pushing for implementation from early September when consumers return from holidays. One potential solution is the “locking in” of price reductions already achieved on approximately 2,000 key product codes through the profit cap mechanism. In practice, even if the cap is lifted, supermarket chains would maintain the reduced prices through July and August until a broader arrangement is finalised.

After the summer period, the plan foresees the creation of a product list whose prices will be reduced from 1 September for at least four months, until 31 December. The reductions, officials stress, must be noticeable in consumers’ everyday shopping basket. According to available information, the Independent Consumer Protection Authority has already prepared a draft list of widely consumed product categories that could be subject to reduced pricing.

It is clear that both the government and market participants are seeking a win-win arrangement: the government wants immediate price relief for consumers, while the market wants the removal of the profit cap. This alignment may enable an initial agreement to be reached today, with technical details to be finalised in the coming period.