Inflation appears to be of great concern to the country’s government, which is looking for a way out to mitigate the impact the price hike will have on both the economy and households ahead of the tough winter ahead.
Deputy Finance Minister Theodoros Skilakakis notes that “the rise in prices for fuel and raw materials, which creates significant problems during this period, should be viewed by companies with particular restraint in terms of shifting” problems “to the consumer.”
Concern has spread not only to the Ministry of Finance, but also to the Bank of Greece. As Deputy Governor Theodoros Pelagidis notes, “This sudden development of higher than expected inflation could create problems in efforts to achieve the best possible economic policy. On the other hand, rapidly rising inflation is expected to cause a strong opposite trend towards recovery, especially if it persists for a long time and continues in 2022. ”
The data shows that inflation in Greece is 3.4% in October, according to ELSAT data, which is of course significantly lower than the levels in the Eurozone. Last week, Finance Minister Christos Staikuras said in this regard that “currently inflation in Greece is about 3.4%. That is, prices for products increased by 3.4% compared to the same period last year, which is a high indicator.
In Greece, the disposable income of citizens in the third quarter of 2021 was 7.1%, so due to a number of measures taken in connection with the coronavirus (subsidies and subsidies from the government), households have more money left, and the increase in prices has been leveled. However, the authorities intend to take a number of other measures to support the population, worth more than 600 million euros. “
The data shows that the situation in Greece is relatively better than what is happening now in the eurozone. In fact, according to the Commission’s report, inflation is expected to rise slightly this year (by 0.1% of the agreed index), while prices are expected to rise to 1% in 2022 and to 0.4% in 2023. At the eurozone level, inflation is expected to be 2.4% this year, 2.2% in 2022 and 1.4% in 2023.