Greek Inflation impacting coffee cups, people cutting consumption

Meeting over a cup of coffee has long been an integral part of Greek culture. However, the inflationary pressure of the past year has forced 54 per cent of people to cut back on their caffeine habit, a recent survey has revealed.

Nevertheless, coffee consumption remains high, Ioannis Benopoulos, president of the Hellenic Coffee Association, told Xinhua news agency.

On an average, Greeks consume 4 kg of coffee — traditional Greek coffee, instant coffee or espresso — per capita annually, Benopoulos said.

Greeks are among the world’s 20 biggest coffee drinkers, according to the International Coffee Organization (ICO).

“Coffee consumption in Greece today is one of the most deeply ingrained habits … At least eight out of ten of those surveyed said that they drink coffee daily,” Benopoulos said.

Seven out of ten coffee lovers drink more than two cups per day and would not replace coffee with any other drink, according to a survey carried out by Kapa Research.

In Greece, people drink coffee in practically all social settings. It is an excuse for getting together with relatives, co-workers or friends.

“Going out for coffee, that we are quite used to doing in our country. This special habit is inextricably linked to our culture. It is no coincidence that four out of ten respondents said that cutting back on coffee consumption would equal limiting social interactions,” Benopoulos said.

However, faced with soaring inflation amidst the energy crisis and the Russia-Ukraine war, many Greeks started ditching the idea of sitting in coffee shops or restaurants over a cup of coffee, the survey showed.

Some respondents opted for the more economical solution of takeaway or making coffee at home.

The year-on-year rate of inflation in the country hit a 30-year record high of 12-plus per cent last June, the Hellenic Statistical Authority (ELSTAT) said.

The rate was 9.3 per cent for the whole year, according to the Bank of Greece’s latest estimates.

“The increase in raw material and energy prices has also affected the price of coffee sold in coffee shops,” coffee shop owner Giorgos Karamanidis told Xinhua.

Data for August 2022 showed that the price of coffee in the European Union (EU) was on average 16.9 per cent higher than in August 2021, according to Eurostat, the bloc’s statistical office.

In 2022, Greek shop owners saw the price of sugar double within a year.

In June 2022, electricity prices were 70.4 percent higher than in the same month of 2021, ELSTAT said.

Although inflation slowed to 4.6 per cent in March this year compared to March 2022 as a result of lower energy prices, many coffee drinkers seem to still think twice before indulging in meeting a friend at a cafe.

Karamanidis said that 20 per cent more of his customers choose takeaway as an option.

Either way, for many Greeks, coffee remains one of their last affordable daily “luxuries”, he said.

–IANS

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