Food pass: Applications, criteria, beneficiaries – Who will receive the €300 food allowance and when

Low-income retirees, the unemployed, and vulnerable social groups most affected by rising inflation will receive the one-time food allowance of 300 euros. When will the Food Pass be introduced?.

Essentially, through the Food Pass, the government will cover a full month’s worth of grocery expenses for 1 million consumers.

Specifically, according to ELSTAT’s announcement, the retail trade turnover index rose by 12.1% in June 2022 compared to June 2021.

One might say this was to be expected, given that last year stores were operating under restrictions and the tourist season had not yet begun due to the COVID-19 measures.

However, sales volume data indicate that households are still reluctant to make major purchases, despite two years of «lockdowns» due to the pandemic.

Overall, sales volume in the sector increased by just 1.2%, while in several cases there was even a significant decline in sales.

Specifically, clothing and footwear stores recorded a decline in both sales value and sales volume of 7.9% and 11.6%, respectively.

The situation is similar at department stores, where revenue fell by 4.6% and sales volume by 8.9%.

Operating costs are putting the squeeze on producers, with high prices for oil, electricity, fertilizers, and animal feed continuing to rise.

According to the industry, the rates—including the estimated increases set to take effect in September—are as follows:

cans +15%,

cosmetics +25%,

dairy products +12%,

margarines +20%,

cold cuts +10%,

sweets, cookies +20%,

ice cream +5%,

detergents +15%,

beauty and personal care products +18%.

High inflation has set off alarm bells among the government’s economic advisors; however, since it is difficult to limit price increases for basic goods, the government opted for a subsidy policy rather than tax cuts.

Accordingly, the Prime Minister is expected to announce from the podium at the Thessaloniki International Fair the provision of a one-time payment of 300 euros to help cover food expenses (Food Pass).

However, there is also criticism that this specific Food Pass measure will further fuel inflation and will not curb rising prices and price hikes.

Surveys on consumer habits conducted in recent months, as well as data from the Hellenic Statistical Authority (ELSTAT) on retail trade, indicate a decline in consumption.