Prices bite into Greek Christmas even as economy improves

ATHENS - Greece's traditional Christmas sweets made of icing sugar, honey and powdered almonds tantalise shoppers ahead of the festive season as they do every year.

But with prices for the delicacies currently up by seven to 10 percent amid a general cost-of-living crisis, it's not certain whether consumers will be able to afford them this year.

At a cost of nearly 24 euros ($26) a kilo for a box of kourabiedes -- the almond biscuits habitually offered this time of year -- Hatzis, a popular pastry shop in Athens, is nearly empty save for a few tourists.

It's a similar story in Thessaloniki, Greece's second-largest city, 500 kilometres (300 miles) to the north.

In the city market, Petros Elmaliotis has few illusions that his stock of nuts will sell out soon.

In past years, people would throng his stand. But this year demand is limited.

"There were six of us at the stand to serve people. Today there are only two," he told AFP.

People "cut back on what they don't consider necessary."

In November, the annual inflation rate dropped to 3 percent, down from the average 9.65 increase for 2022.

But food prices continue to gallop higher, up by 9 percent in November from the same month last year.

Meat is up 8.1 percent, fruit by 12 percent, and milk, cheese and eggs by nearly 5 percent.

And olive oil has jumped by over 31 percent in a year, fuelled by poor harvests in global leader Spain.

The jump in food prices comes after Greeks have already experienced a brutal fall in their living standards over the last 15 years due to the austerity measures imposed to keep the country in the eurozone following its sovereign debt crisis.