What the world can learn from Greece and its ‘household basket’ program

The US-Israel-Iran war has sent shockwaves through the world economy and the inflation predictions of the COVID era are still hard to ignore. In many countries, these pressures are already being felt, as families struggle to afford the necessities.

During and after the pandemic, governments across the political spectrum attempted price controls to protect people from rising living costs. For example, Spain and Mexico, implemented such measures from the political side; Greece did so on the right.

It was a response to inflationary pressures, weakening household finances and growing insecurity for many people.

Among these examples, Greece’s “domestic basket” program stands out as a comprehensive effort to keep essential goods affordable. As consumers may also face expensive living conditions, it’s a lesson worth exploring.

Greece entered the period of inflation (2021-22) with some of the lowest wages in Europe. Its average salary is still only a third of that amount in Germany. With inflation reaching 10%-12% by 2022, daily necessities such as food, dairy products and basic household goods became more expensive.

In November 2022, the center-right New Democracy government introduced the household basket, which requires major retail chains to keep prices low on more than 50 categories of essential items. These included bread, pasta, rice, dairy products, cleaning products and baby food. Relevant items were clearly marked in stores, and the list was updated weekly.

Introduced for the first time as a temporary tool, the program has been repeatedly expanded due to ongoing price declines – most recently due to concerns about price conflicts. It has become a central part of the country’s strategy to stabilize the cost of living, together with related measures including the effects of profit in the fuel sector.

Transparency-based management

What distinguishes the Greek model is how it combines control and consumer access to information through a digital platform. Major supermarket chains are required to publish the prices of their basket items online.

Once it is listed, the price of the item will not increase for seven days, although it may drop at any time. Retailers face fines of up to €5 million (£4.3 million) for breaching the law. The scheme also requires supermarkets to provide retailers’ price lists, to give authorities an indication of where the marks are appearing.

The platform allows customers to compare prices across retailers and find branches that stock specific items. All purchases must take place in person, maintaining the scheme’s focus on physical sales while improving transparency.

Outside of the basket itself, in 2025 the Greek development agency and traders agreed to an 8% price reduction on average for 2,000 properties – and the interest rate on the essential items was at their level in 2021. The auditors conducted regular surveys to ensure compliance.

Across a wide range of products, there has been a noticeable drop in prices. Among 56 breakfast foods and cereals, there was a price drop of up to 23%; among 34 cheese products, the fall was 5%-35%; and for fresh meat, the decrease was 5%-7% for the three products. Of these, oil and fats fell in price by 5%-16%, pasta by 3%-5%, and sweets and chocolate by 3%-17%.

Gradually this basket expanded to include pulses, fresh poultry, meat, milk and cheese. The Greek government has also introduced “short-term baskets” during peak demand seasons. Until now, Christmas and Easter baskets have included lamb, goat meat, turkey and chocolate Easter eggs to keep a cap on holiday expenses.

Price controls are still controversial for some. Greek traders have argued that the system is unfair, and that they cannot absorb the costs.

However, in the case of the Greeks, supermarkets accepted reduced profit margins for high-priced product lines. They responded with price wars to attract customers and strengthen market share, and with their low-cost products. One of the consequences of these measures is that Greece now has a food basket that is relatively cheap compared to other EU countries.

In the UK at the height of the COVID epidemic, some major retailers have raised prices above inflation – doubling their profits between 2019 and 2021-22. Under such circumstances, many may feel that it is appropriate to ask them to contribute to fighting the cost of living crisis.

So, while price systems may not always appeal to retailers and other sectors, they are becoming increasingly popular. Many countries have been experimenting with ways to save the cost of living, as effective tools to stabilize inflation and support citizens in times of unexpected economic stress.

The experience of Greece shows that such measures can be organized, exposed and implemented. It also shows that price control should not be limited to one political culture. They have been used by governments across the board in the face of inflationary pressures.

As the UK navigates another economic crisis, fueled by conflict and volatile energy markets, the Greek family basket offers an example to learn from. It’s not a complete solution to high inflation – nothing easy is – but it shows how governments can step in to ease pressure on households while maintaining focus on key markets.

A political party ready to take steps that provide immediate relief to struggling families would make a lot of sense at a time when many people have not yet recovered from the last cost of living crisis.