Greece Takes Aim at "Greedflation" with Baby Formula Price Controls

baby formula, infant formula

Athens, Greece: Greece's centre-right government fired a shot at soaring prices on Wednesday, announcing price controls on baby formula and accusing multinational suppliers of exploiting consumers. The move follows a series of similar initiatives targeting basic goods amid high inflation.

Prime Minister Kyriakos Mitsotakis took aim at major supermarket suppliers, accusing them of "greedflation," leveraging inflation to inflate prices further. "We'll keep deploying new tools until everyone, especially multinationals, understands Greece is not a pushover," he declared. "Greedflation won't be tolerated."

The new measures, taking effect in March, impose a 7% profit cap on baby formula. This comes on the heels of recent months' actions, including fines of up to 1 million euros levied against international companies deemed to have violated government-imposed profit caps.

After a seven-month decline, the Greek inflation rate swung higher to 3.7% in December, surpassing the 2.9% average for eurozone countries. This rise fueled the government's urgency in tackling price gouging, particularly for essential items like baby formula.

The price controls, while met with mixed reactions, signal a strong stance against what the government sees as profiteering from basic necessities. Whether this approach effectively curbs inflation and protects consumers remains to be seen, but it's clear Greece is ready to fight "greedflation" head-on.

Copyright Greekcitytimes 2024