Inflation continues to move upwards in Greece, despite what the government says to the contrary (and in fact to the highest degree), in fact it is the main problem for households and small and medium-sized businesses.
It is possible that Prime Minister Kyriakos Mitsotakis “sees” price reductions, based on what he mentioned in the last cabinet meeting and that the Minister of National Economy and Finance likened the accuracy to “flu”, which will run its course and go away, however the evidence that “sees” the light of day shows that accuracy is present and is even characterized by increasing trends.
This image also exists in Greek society. Households are expected to face a difficult autumn, with September bills traditionally “raised”. To the fixed expenses for housing, food, fuel, energy, are added the additional expenses that the start of the school and academic year brings for families with children.
Inflation: Citizens’ forecasts
It is indicative that the latest report by the Consumer Institute, which showed that 92.7% of citizens are not satisfied with the government’s measures on accuracy, is indicative of the prevailing climate. After food for which 97.2% say they have seen the biggest increases, energy follows, while 96% say they have been forced to change their shopping habits because of punctuality. The changes concern a reduction in purchases (69.7%), cheaper products (71.5%), offers and discounts (77%) and limiting expenses for mental health (81.4%).
One of the main questions people have is the duration of accuracy and inflation, as there is a 3+ year high accuracy condition. Regarding inflation, the Central Bank estimates that it will remain above 2% in 2026. In particular, it predicts that from this year’s 3% it will “fall” to 2.3% in 2025 and to 2.2% in 2026. above element is extremely worrying because it shows that even in 2026 we will not reach the 2% target set by the European Central Bank and the critical question has to do with the limits of citizens’ endurance, as the measures announced by Kyriakos Mitsotakis at the TIF show to be lower than the needs that exist. If this scenario holds true, then citizens are expected to face another 2.5 years of extended precision, which will be added to the already 3-plus years of high precision, at a time when incomes are insufficient to meet most needs of households in Greece.
The rise in inflation continues
It is characteristic that August was the fourth month of continuous rise in inflation, which shows that there is a dynamic, which is showing its “teeth” to the citizens, who find that their disposable income is shrinking. According to ELSTAT data, the largest price increase on an annual basis (6.6%) was recorded by the “hotels-cafe-restaurants” group, followed by the “clothing-footwear” group with a 6.2% price increase. Prices in the “housing” group increased by 5.5% mainly due to price increases in house rents, electricity and natural gas.
In food, an annual increase of 2.8% was recorded due to price increases in: bread, breakfast cereals, meats (general), fresh fish, olive oil, dried fruit and nuts, 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: pizzas and pies, dairy and eggs, fresh fruit, frozen vegetables, potatoes, other food.
What do the valuations show?
As far as the individual products and services are concerned, the biggest annual price increase is recorded for another month by olive oil with a rise of 49.1%. A significant double-digit increase in prices is noted for natural gas (+28%), followed by: the transportation of passengers by plane (27.3%), health insurance premiums (14%) and fresh fish (+11.3%).
An important fact is that in August the prices also increased compared to July, increasing by 0.3%, when in the corresponding July-June comparison they had decreased by 0.7%.
On a monthly basis (compared to July), the biggest increase was recorded in the prices of electricity (10.9%), followed by the prices of pharmaceutical products (3.9%) and fresh vegetables (2.8%).
The biggest reductions were recorded in yogurt (2.8%), hotels (4.5%) and fuels and lubricants (2.2%).
Higher than the initial estimates, it was the harmonized inflation that took place last month at 3.2%, when at the end of the previous month Eurostat calculated it at 3.1%. It is worth noting that this specific index does not include food and energy prices, which means that the accuracy in Greece has spread across the length and breadth of economic activity. Therefore, inflation in Greece seems to have gained a strong foothold and will not… go away, like the flu.
SOURCE: ot.gr
#Inflation #accuracy #remain #years #experts #estimates
