With the mountain of obligations, tax and non-tax, waiting in the «corner» the households after the summer break, «trimming» the disposable income, the new wave of precision comes to intensify the feeling of economic insecurity, which is already »beating« for many red, because of the »traumas" and debts left by the pandemic.
The first visits to supermarket, and the opening of stacked bills, brings the «first strokes» but also sparks anxiety about how the year will turn out, especially for those who have seen their incomes shrink over the past two years due to recession, suspensions and unemployment.
Indeed, the prospects are bleak as prices of basic raw materials, traded products, transport costs, fuel and energy have reached record levels, both internationally and in Greece.. Also, the forecast for heating oil refers to a start-up at least 20 minutes more than last year.
The government
Of course, the economic staff appears reassuring, even though it knows that when accuracy is put on the agenda of public debate, the political cost is heavy. As the deputy finance minister noted, speaking on the Ant1 morning band, Theodore Skylakakis, the increases in electricity tariffs are due to the large increase in the cost of electricity production and announced that there will be government intervention.
Actually, on the market and the price increases, he said that the assessment is that the increases will be temporary, as they are due to the pandemic and special conditions affecting the Greek economy. Of course, even the upswing in services and prices has been a given for months and of course citizens in these difficult circumstances are asked to cope with daily expenses.
The «harsh» reality
Already, in addition to the upward inflation, which is starting to show its «teeth» (at +1.4% was the General Consumer Price Index in July 2021) the signs in the cost of production of goods are not positive.
Thus, the general producer price index in industry (total domestic and external market) increased by 13% in July this year compared to the corresponding index in July 2020, compared to a decrease of 7.9% recorded in the corresponding comparison of the indices in 2020 and 2019.
It should be noted that the so-called «imported inflation», i.e. the general import price index in industry, already recorded a large increase of 20.5% in June this year compared to the corresponding index of June 2020, compared to a decrease of 11.4% recorded when comparing the corresponding indexes in 2020 to 2019.
At the same time, according to the UN Food and Agriculture Organization (FAO), basic commodities in international markets, due to demand, stock market trends, but also various situations (natural disasters etc.), are on the rise, such as cereals with an increase of 31% compared to last year, sugar with 39%, coffee with 49%.
The «explosive» cocktail is completed by the prices of fuel and energy and of course the transport costs. It is indicative that the price of electricity in the wholesale market has tripled since November 2020 and by 83% since the beginning of the year. Compared to August last year, the increase in the wholesale market is 120.2% and it is obvious that for the majority of consumers who do not have «fixed tariffs», but with wholesale price clauses, this will mean increases. Also, natural gas prices around the world are at an all-time high.
Small and medium-sized enterprises in the red
Against this background, all those who produce are seeing their costs skyrocket. Thus, the Athens Chamber of Commerce and Industry is calling on the government to take measures to prevent the cost of electricity for small and medium-sized enterprises from skyrocketing.
«Small and medium-sized enterprises and households cannot bear a new «electric shock», as they cannot, after a long period of economic crisis and the consequences of the pandemic, bear the increase of up to 50% in the cost of energy», stresses Kostas Damigos, First Vice President of the Athens Chamber of Crafts and Industry.
«Businessmen, in fear of a fourth wave of the pandemic, will have to start paying off their accumulated liabilities with dramatically shrinking turnover,» he adds.
Mr Damigos stresses that the government's planning, apart from supporting vulnerable households, from the possible increase in electricity tariffs, should also be the support of vulnerable businesses that are unable to meet their obligations.
The BEA points out to the competent Ministry of Environment and Energy that it must take immediate action, as the soaring prices of natural gas and carbon dioxide emission rights will lead to an unmanageable increase in the operating costs of small and medium-sized enterprises.
Basic goods
With energy and fuel costs on the rise, staple goods such as bread and fresh produce are expected to go through a process of increases.
Already, bakers are noting that with these production costs, bakery products will have to be revalued while key supermarket suppliers are already exploring how to balance between the pressures of their costs and the need to «keep» prices and of course market share.
Finally, it is recalled that in many fresh products (fruits and vegetables) due to fuel, up to 45% increase in fertilizers and agricultural products etc. (market based on energy costs) and weather-related disasters, prices «pinched» in the summer in many items.
