Greece: Inflation at 6.2% in January

Inflation rose to 6.2% in January 2022, according to official Hellenic statistical authority – ELSTAT data.

Rising prices for basic products continue at an increasing rate, creating a major blow to citizens’ pockets.

It is characteristic that during the last quarter the average price for potatoes has increased by 47%, for spaghetti 23%, for olive oil over 10%, for fresh milk and cheese 8%, for cold cuts 5% and for detergents 4%, at the level of prices in supermarkets. It is worth noting that the data come from e-katanalotis.gov.gr.

When food items constitute 35.9% of the total monthly expenditures of the poorest households, based on the data of the Family Budget Survey of the Hellenic Statistical Authority, the price increases in basic food products become unbearable.

It is worth noting that according to the IOBE Economic Conjuncture survey for the month of January, the percentage of consumers who state that “as soon as they make it” reached 65%.

The next months will be difficult

Inflationary pressures on energy, travel, heating costs that push family budgets show that they will remain in the coming months

After all, in the data recently published by the European Commission, the inflation forecast in Greece reaches 3.1% (0.8% of the budget forecast) for 2022, while the previous one was only 1%. It is worth noting that this assessment is fully in line with the latest BoG, which rang the alarm bell.

According to recent Eurostat estimates released, the harmonized index of consumer prices in Greece in January is projected to reach 5.5% compared to an annual change of 4.4% in December 2021. If the Eurostat estimate is confirmed. It is worth noting that the last time the harmonized index of consumer prices was formed at levels above 5% was in December 2010 (5.2%), while in the same year it had reached 5.7% (September 2010). Of course, it is worth remembering that nominal salaries in Greece were higher in 2020 compared to today.

Import inflation is also high

The so-called imported inflation marked a dizzying rise for another month in Greece, mainly due to the increase in oil prices.

In particular, according to ELSTAT, the General Price Index of Industry in December 2021, showed an increase of 23.6% compared to the corresponding index of December 2020.