Profit ceiling could backfire, central bank warns

[AMNA]

The nett borderline headdress – and perchance different measures oregon initiatives taken successful the past such arsenic the “price reduction” and the celebrated “baskets” – whitethorn ultimately pb to an summation successful prices oregon astatine slightest not to their expected reduction.

This is not lone due to the fact that of the accrued administrative costs the implementation of the measures entail, arsenic supermarket chains claim, but because, simply, they are not charities, nor nonprofit organizations and so successful some way indispensable preserve, if not enhance, their profitability. “Businesses whitethorn take to trim prices connected definite agreed products by pursuing pricing policies successful enactment with authorities initiatives, but astatine the aforesaid clip summation prices connected different products to support wide nett margins,” said the study of the Bank of Greece politician connected Monday.

Although successful Greece the nett borderline headdress has applied since 2020 and with an expanded effect from 2022, nutrient ostentation accrued by 33.4% successful the play 2020-2025 compared to an summation of 30.8% successful the eurozone. 

The cap, adjacent successful the existent conditions, does not use to each supermarket merchandise categories, but to 59 categories, 46 of which interest food, while adjacent within a much wide category, some subcategories person been excluded.