Price differences with more expensive countries narrow

A Kathimerini survey comparing the cost of basic goods and services in five European countries reveals that prices in Athens are similar to those in Rome, Munich, London and Brussels.

Basic consumer items such as bread, yogurt, sweets, coffee, sugar and newspapers cost much the same in those cities, despite a wide disparity in incomes. The average Greek income (not including the black economy) is only 70 percent of the average European Union income.

Nine months after the introduction of the common currency in 12 countries, the discrepancy between prices in the traditionally cheaper and the more-expensive countries has narrowed considerably.

The rounding off of prices and the incidence of price gouging are not uniquely Greek, but the situation in Greece sometimes seems out of control. Judging solely by the prices of fruit and vegetables in Greece, one would never guess that this country produces them plentifully. Greece is also expensive when it comes to coffee: An espresso at a café table costs €2.50 ($2.45), compared with around €2 in Germany and a bit below that in France. According to recent surveys by Kapa Research and Global Link, 70.6 percent of Greeks believe that the prices of goods and services have risen recently, while 50 percent think that they have risen higher than in other European countries.

Similarly, 68.5 percent of the 310 million inhabitants of the eurozone believe the cost of living has risen recently, according to a European Commission survey.

Europeans gained a clearer picture of the euro era during their summer vacations, when they had the opportunity to travel and compare prices, which is easier to do now because of the common currency.

They could see that the price of a small bottle of water on Majorca has risen by 83 percent, while a beer at an Italian resort has gone up from the equivalent of €2.50 last year to €4.50.

A meal in Rome's Piazza del Popolo this year shot up to almost twice what it cost last year. In Spain, the price of a glass of beer has risen from €1 to €1.50, while sparkling mineral water in Florence costs 80 percent more than a year ago.

In Greece, according to data collected by consumer organizations, all categories of goods and services have become more expensive.

The price of public transport has gone up by 6.7 percent, cigarettes by 6.4 percent, hairdressers' services by 20 to 50 percent, bread by 3.1 percent, parking by 25 to 30 percent, newspapers and magazines by 8.1 percent, restaurants, bars and cafés by 20 to 50 percent and doctors' visits by 4.8 percent.

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