Galery

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A negative annual change in the range of -2.22% (according to a sample from the central market Varvakios Agora) is reported by meat prices in Greece but this year the cost of the New Year's table of Greeks will be slightly higher, by 1.82%, compared with 2014, as shown by the results of the checks that the Institute for Trade and Services of the National Confederation of Hellenic Commerce carried out at random in the period 16-21 December 2015.

In particular, the cost of the Christmas table will be 147.39 euro compared with 144.76 euro last year and 147.75 at the same time in 2013 and with the same products. The recorded marginal increase of 2.63 euro (or 1.82%) compared to December 2014 is mainly due to the increased VAT rates on sweets (traditional Christmas sweets - cookies and melomakarona) from 13% to 23%.

As for meat, the most significant change is recorded in the price of lamb (-4.62%), which is about 6.2 euro/kg, followed by a small decline in turkey (-3.03%) contrary to pork prices that report a 2.70% increase.  Food in supermarkets report a mixed trend - while soft drinks, beer and feta cheese record a decline of -3.03%, -6.56% and -2.07% respectively, wines record an increase in prices (with 24.59% for white wines and 4.62% for red wines) as well as olive oil (14.81%).

With regard to fruit and vegetable prices, their delivery costs are lower than last year (-0.92%). At the same time, the cost of potatoes records the highest increase (18.52%) in contrast to the fall of cabbage cost (-16.28%) that records the largest annual decline.

Turnover in December - 3.22 billion euro

The National Confederation of Hellenic Commerce's estimates for an 8.3% turnover contraction in December 2015 compared with the same month of 2014 are based on a series of events that have negatively affected both consumer psychology (reduction of consumer spending) and the smooth functioning of business.

It expects turnover in December to amount to 3.22 billion euro compared with 3.55 billion euro in December 2014 (a reduction of 8.3%) and 5.55 billion euro in 2009 (a reduction of 42%).

In particular, the most important parameters of the estimated annual decline in turnover of commercial sites are as follows:

• The side effects of the capital controls imposed in the second half of 2015 will continue to be a limiting factor for the development and prosperity of local businesses, although they are already declining since companies are showing a high degree of adaptability.

• The numerous tax liabilities to be settled by the end of December (the 3rd instalment of the single property tax, the payment of the road tax for 2016, payments for arrears, VAT payments for large companies) are a factor that prevents consumer spending from increasing, which is observed every year at this time.

• The established reform fatigue observed in institutions in both the private and public sector, due to the excessive requirements set by the country’s creditors, which are primarily of a financial nature, are deconcentrating the market and creating a climate of uncertainty and continuous postponement.

As noted by the National Confederation of Hellenic Commerce, "these estimates are approximate and result from data processing carried out by the Institute for Trade and Services, according to the participation of the December index in the total turnover given in the annual index of turnover. It should be emphasized that the turnover index does not fully coincide with the categories described in the annual structural analysis, which leads only to an approximate cross-check of parameters, as significant subgroups of retailing are not included in the calculation of amounts."