Killer prices

Rising energy and commodity prices continue at an ever faster pace, dealing a serious blow to the pockets of citizens.

According to official data ELSTAT, inflation rose to 6.2% in January 2022. Over the last quarter, the average price of potatoes increased by 47%, spaghetti by 23%, olive oil by more than 10%, fresh milk and cheese by 8%, meat products by 5%, detergents funds – by 4% (according to e-katanalotis.gov.gr.).

When food makes up 35.9% of the total monthly expenditure of the poorest households, according to the Hellenic Statistical Office Family Budget Survey

According to the IOBE Business Survey (Οικονομικής Συγκυρίας του ΙΟΒΕ) in January, the percentage of consumers who say they “can barely make ends meet” reached 65%.

Alas, everything suggests that the rise in energy prices, heating and transport costs, which put pressure on the family budget of citizens, will continue in the coming months. Prices for food and basic necessities will continue to rise.

According to data recently released by the European Commission, Greece’s inflation forecast 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 consistent with the latest BoG report, which sounded the alarm.

According to the latest published estimates by Eurostat, Greece’s average consumer price index in January is forecast to reach 5.5%, compared to a 4.4% annual change in December 2021.

The last time the consumer price index (εναρμονισμένος δείκτης τιμών) was above 5% was in December 2010 (5.2%), while in the same year it reached 5.7% (in September 2010). Of course, it is worth remembering that nominal wages in Greece in 2020 were higher than they are today.

The so-called “imported inflation” marked a breakneck growth for another month in Greece, mainly due to rising oil prices. According to ELSTAT, the price index (Γενικός Δείκτης Τιμών Εισαγωγών στη Βιομηχανία) showed an increase of 23.6% in December 2021 compared to the corresponding indicator in December 2020.



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