31 October 2025
According to the recurring survey by the Institute for Retail Consumer Goods Research (IELKA) for September 2025, the typical supermarket basket of products in Greece remains the cheapest among eight European countries. The comparison, which is based on data from over 6,000 product prices and 44 supermarket chains across Europe, includes 40 categories of basic household goods, from food and cleaning products to personal care items. The results show that based on final prices (including VAT), Greece has the lowest total basket cost, with the other countries showing more expensive prices: +33% in Germany, +30% in France, +15% in Italy and Romania, +12% in Spain, +10% in the United Kingdom, and +1% in Portugal. However, when VAT is removed, the differences widen even further, with Germany and France being up to 39% and 38% more expensive respectively.
VAT: A Key Factor in Final Price Formation
A key factor in the formation of final prices is VAT on food. Greece has the highest average VAT rate (15.6%) among the countries examined, compared to 9%-10% on average in the others, and only 4.8% in the United Kingdom. Many foods in Greece continue to be subject to the medium rate of 13%, while in other countries they are at lower rates (4%, 5%, 6%) or even zero rates. Despite the high VAT and energy costs, Greek retail has cheaper fresh products and more expensive goods (coffee, sugar, olive oil).
Source: FoodReporter October 22, 2025 #1501, page 4.