Greek gvt continues Market Pass to stave off food inflation

With food prices continuing to rally, one of the first issues on the new government’s table is expected to be the extension of Market Pass beyond July.

Despite the de-escalation of inflation to 2.8% in May, Hellenic Statistical Agency-ELSTAT data show that the annual rate of price increase in the group of food items and non-alcoholic beverages stood at 11.6%, while from April to May food prices increased by 1.8%.

Significant appreciations are recorded in basic necessities. It is typical that within a month rice increased by 5.4%, flour by 8%, olive oil by 4.4%, potatoes by 4.3%, eggs by 4%, fresh fruit by 7.6 %, ice creams by 5.4% and soft drinks increased by 5.3%.

Compared to May 2022, the biggest increases are found in dairy products and eggs (18%), in oils and fats (15.8%), in coffee-cocoa-tea (13.2%), in meats (11.9%) ), in bread and cereals (11.1%).

The Market pass

Since the Market Pass payments end in July, the new financial staff is expected to consider the extension of the Market Pass with the big question being the budgetary margins to finance the measure.

On Thursday (15/6) the budget execution data for the first five months of the year will be announced, from which it will be decided to a large extent whether there will be fiscal space for a new intervention as well as the duration and scope, i.e. for how long to extend the measure and whether it will be given to all current beneficiaries or there will be income criteria and it will be granted only to vulnerable households.

It is noted that the Market Pass payments started in February and are completed in July with the beneficiaries amounting to 2.84 million. Those who had chosen to deposit into their bank account received the last subsidy for the months of May, June and July at the beginning of May. Households that preferred to deposit the allowance on the physical card will collect the last installment on July 3, while digital debit cards will automatically expire on August 31, 2023 and it will not be possible to carry out transactions with them after that date.

The beneficiaries

Beneficiaries of the Market Pass are natural persons, single, married, parties to a cohabitation agreement, separated, divorced or widowed, who are tax residents of Greece and meet the income and real estate value criteria provided by law.

The Market Pass immaterial digital card is used at POS owned by Super Markets, grocery stores, butchers, patisseries, dairies, bakeries and various food stores.

The amounts

The amount of aid per household amounts to 10% of the monthly amount of purchases, which is set at 220 euros for a single-member household, increased by 100 euros for each additional member of the household with a maximum purchase limit of 1,000 euros.

The monthly aid amounts amount to:

22 euros for a single member household
32 euros for a couple without children
32 euros for a single-parent family with a dependent child
42 euros for a single-parent family with two dependent children
42 euros for a couple with a dependent child
52 euros for a couple with two dependent children
62 euros for a couple with three dependent children
72 euros for a couple with four dependent children