In recent months there has been a steady upward trend in prices around the world. Characteristic is the evolution of the level of inflation on a monthly basis.
As is evident from Table 1 from January 2021 onwards, there is a continuous increase in the price level in Greece as well, with inflation reaching 1.9% in August.
The chart after August 2021 continues with quarterly data showing inflation estimates as emerging from Oxford Economics until 2025. It is clear that based on these estimates inflation is not expected to exceed the target of 2% in the next years.
Recently, due to this development, we are watching a series of publications that talk about the risks that accompany the increase in inflation and that most likely by 2021 inflation in Greece will reach a decade high, close to 2.5%.
The picture observed for the Eurozone is similar, with inflation moving at higher levels than those of Greece, reaching 3% in August 2021 (based on provisional estimates by Eurostat).
This means that inflation is already well above the European Central Bank (ECB) target for inflation of 2%, with the ECB reassuring, however, that inflation is higher due to higher oil and commodity prices as well as and the lack of components, such as microchips, caused by the pandemic and that from next year it should be expected to decrease again.
Table 2 presents the latest estimates of Oxford Economics, Focus Economics and Consensus Economics on the expected level of inflation for 2021 and 2022 for Greece.
Despite the increase in recent months, it is clear that the picture presented by the three reliable organizations in terms of forecasts is much more optimistic about the level of inflation in 2021. 2 out of 3 organizations (Consensus Economics and Focus Economics) do due to zero inflation and Oxford Economics for inflation of 0.6% for the whole year.
* Panagiotis E. Petrakis – Professor of EKPA / Department of Economics
* Pantelis Ch. Kostis (Ph.D.) – EKPA / Department of Economics
Latest News
Critical Week for Greece-Cyprus Cable
The study concluded that the social benefits of the interconnection, totaling 8 billion euros, far outweigh its 1.9 billion euros construction cost, resulting in a net social benefit exceeding 6 billion euros.
Roberta Metsola Re-elected President of European Parliament
Her second term will be for a period of two and a half years
ELSTAT: 1.5% Increase in Business Turnover in May 2024
The most significant increase in turnover in May 2024 compared with May 2023 was recorded from the enterprises of the Accommodation and Food Service Activities, sector which grew by 14.8%.
Cosco: Container Traffic Decline at Piraeus Port Continues
This strategic shift has diminished Piraeus's standing as a prominent Mediterranean port and a key transshipment hub post-Suez Canal.
Gov’t Eyes Return of Power Subsidies Amid Spike in Rates
According to reports, the government will resume an electricity subsidization program, given that forecasts cite disruptions – i.e. higher rates
ELSTAT: 6.3% Increase in Output Price Index for Agriculture and Livestock
The 6.3% rise in May 2024 is largely driven by an 8.8% increase in the crop output group, particularly due to changes in olive oil prices, and a 0.5% increase in the animal output group.
Balkans Blackout Highlights Climate Threats to Power Grids
The surge in electricity demand during the heat wave and the power deficit in Balkan markets have driven up prices in the Greek wholesale electricity market.
Greece in Top 4 Destinations Favored by European Tourists
Greece was selected by 5.9% of respondents who were asked where they would vacation this year, up from 5.4% in the same survey last year
Scope Affirms Greece’s BBB- Ratings; Revises Outlook to Positive
The international ratings firm raised Greece to investment grade in early August 2023
First Seaplane Test Flights to Skopelos, Alonissos, Skyros
After decades of on-again, off-again efforts to schedule regular seaplane routes to Greece's numerous island and coastal destinations the prospect now appears within sight