Greece moves to curb profits as fuel and consumer goods prices rise

[InTime News]

Greece will set a cap on gross profit margins on fuel, food and other consumer goods to help curb profits, its development ministry said, as Western sanctions over invading Ukraine by Russia have pushed up world commodity prices.

Annual consumer inflation of 6.2% in January was the highest in Greece for at least 21 years, boosted by energy costs, oil, gas and wheat prices, among other materials commodities, having soared after sanctions disrupted global supply chains.

Greece plans to legislate gross profit restrictions on goods or services essential for health, food, transport and security which will come into effect when the unit margin exceeds the figure before last September, the report said. ministry in a statement.

“I don’t want to lie to people. The coming period will not be easy in terms of prices,” Development Minister Adonis Georgiadis told Greek radio on Friday, pointing to a recent spike in oil and gas prices.

Authorities will step up inspections and impose fines once they discover profits, he added.

The measure, which will last until the end of June, is also intended to help counter the negative impact of the coronavirus pandemic on global markets, the ministry said. [Reuters]

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