Bad (but unfortunately expected) news from the economy as it was announced today, inflation accelerated in July as it increased to 2.7% from 2.3% in June and compared to an increase of 2.5% in July last year. The main reasons are the price increases in several food items (e.g. olive oil +56.7%), but also in natural gas and a multitude of services, according to ELSTAT.
Of course, these increases and the accuracy – despite the statements of government officials – touch more the middle and lower economic strata, essentially eliminating the salaries and pensions that remain at the bottom of the European ranking, despite the government’s praise for their marginal increases .
In addition, this increase, in itself, questions the government’s insistence on reducing VAT on basic food products, since it also shows how the state revenues from VAT are increasing without any impact on society.
Increases in food items
In particular, in one year further price increases were recorded in: Bread (0.9%), Cereals for breakfast (7.4%), Meat – general (1.7%), Fresh fish (8.4%), Olive oil ( 56.7%), Fresh vegetables (3.5%), Preserved or processed vegetables (1.8%), Sugar – chocolates – sweets – ice creams (4.1%), Mineral water – soft drinks – fruit juices (8, 6%) and Alcoholic drinks – not served (1.7%).
Increases in all… other items: Clothing, footwear, medicines, transport, natural gas
There were also price increases in: Clothing and footwear (4.3%), House rents (4.1%), Home repair and maintenance (3%), Natural gas (23.4%), Heating oil (6.3% ), Household services (2.6%), Pharmaceutical products (1.2%), Medical-dental and paramedical services (1.6%), Hospital care (3.4%), New cars (2%), Spare parts and car accessories (3.3%), Fuels and lubricants (0.6%), Maintenance and repair of personal transport equipment (4.1%), Other services related to personal transport (0.8%), Passenger transport by plane (18.4%), Information processing equipment (5.4%), Small leisure items – flowers – pets (2.5%), Entertainment and cultural services (1.5%), Newspapers – books and stationery items (2.3%), Package holidays (7.5%), Preschool and primary education (4%), Secondary education (3.6%), Higher education (2.8%), Restaurants- patisserie- cafes- canteens (6.6%), Hotels-motels-inns (12.6%), Hairdressers and personal care shops (4.9%), Other personal items (4.7%), Health insurance premiums (14%) and Vehicle insurance premiums (5.6%).
Significant price increases within a month!
Also, between July and June this year, the price increases in: Bread (1%), Cereals for breakfast (6%), Beef (1.5%), Pork (2%), Fresh fish (3.6%), are considered significant. Fresh whole milk (2.1%), Yoghurt (2.5%), Fresh vegetables (6%), House rent (0.7%), Electricity (9.5%), New cars (1.4%) , Fuels and lubricants (1%), Transport of passengers by plane (7.3%), Restaurants-patisseries-cafés-canteens (1.4%), Hotels-motels-inns (3.5%) and Hairdressers and personal shops care (1.1%).
Conversely, prices fell in: Flour and other cereals (8.9%), Dairy and eggs (1.8%), Other edible oils (8.5%), Fresh fruit (9.2%), Potatoes (6.1%), Other food (2%), Municipal fees (1.5%), Electricity (1.8%), Consumer goods (3.2%), Used cars (2.8%) , Telephone services (0.5%), Audio and video processing equipment (5.6%) and ‘Other personal care items (3.9%).
According to ELSTAT, the increase in the general consumer price index in July came mainly from the changes in the following groups of goods and services:
1. From the increases of the indicators by:
*2.4% in the “Food and non-alcoholic beverages” group, due to price increases mainly in: bread, breakfast cereals, meats (general), fresh fish, olive oil, fresh vegetables, preserved or processed vegetables, sugar – chocolates – sweets – ice creams, mineral water – soft drinks – fruit juices. Part of this increase was offset by the decrease in prices mainly in: flour and other cereals, dairy and eggs, other edible oils, fresh fruit, potatoes, other food.
*0.8% in the “Alcoholic beverages and tobacco” group, due mainly to an increase in prices of alcoholic beverages (not served).
*4.3% in the “Clothing and footwear” group, due to price increases in clothing and footwear.
*2.4% in the “Housing” group, due to price increases mainly in: house rents, house repair and maintenance, natural gas, heating oil. Part of this increase was compensated by the reduction of prices mainly in: municipal fees, electricity.
*1.9% in the “Health” group, mainly due to price increases in: pharmaceutical products, medical-dental and paramedical services, hospital care.
*3.5% in the “Transportation” group, due to price increases mainly in: new cars, car parts and accessories, fuel and lubricants, maintenance and repair of personal transport equipment, other services related to personal transport, air passenger tickets . Part of this increase was offset by the decrease in prices mainly in used cars.
*1.7% in the “Recreation-Cultural activities” group, due to price increases mainly in: information processing equipment, small leisure items – flowers – pets, entertainment and cultural services, newspapers – books and stationery, package holidays. Part of this increase was offset by a decrease in prices mainly in audio and video processing equipment.
*3.5% in the “Education” group, mainly due to price increases in: pre-school and primary education fees, secondary education fees, tertiary education fees.
*6.7% in the “Hotels-Cafes-Restaurants” group, mainly due to price increases in: restaurants-patisseries-cafes-canteens, hotels-motels-inns.
*2% in the “Other goods and services” group, due to price increases mainly in: hairdressers and personal care stores, other personal items, health insurance premiums, vehicle insurance premiums. Part of this increase was offset by the decrease in prices mainly in other types of personal care.
2. From the reductions of the indicators by:
*0.2% in the “Durable goods-Household items and services” group, due to a decrease in prices mainly in items of immediate household consumption. Part of this decrease was offset by the increase in prices mainly in household services.
*0.3% in the “Communications” group, mainly due to a decrease in prices for telephone services.
At the same time, the general index showed a decrease of 0.7% in July 2024 compared to June 2024, against a decrease of 1.1% recorded during the corresponding comparison of the previous year.
As for harmonized inflation, it increased by 3% in July this year compared to the corresponding index in July 2023, against a 3.5% increase noted in the corresponding comparison in 2023 to 2022. While, between July and June this year, the harmonized index decreased by 0.5%, compared to a decrease of 1% recorded in the corresponding comparison of the previous year.
#Everything.. #Inflation #rose #July #June
