Greece’s runaway inflation

Inflation in Greece reached a record 7.2%(?) in February, with the price of gas rising by 78.5%, electricity by 71.4% and motor fuel by more than 23% in the last 10 days alone .

The Greek consumer price index (CPI) rose to 7.2% in February 2022, the Greek Statistics Office said on Thursday. The media is talking about the highest level of inflation in the last 16 years.

The data showed that the surge occurred as a result of an increase in the consumption of natural gas by 78.5%, electricity by 71.4%, fuel oil by 41.5% and fuel and lubricants by 23.2%. The jump followed a 6.2% rise in January. On a monthly basis, the consumer price index rose 1.1%.

The war in Ukraine raises the cost of energy and grain, but the rise in energy prices began in September 2021, which led to an increase in inflation as early as October. Finance Minister Christos Staikouras told Rapapolitika FM on Thursday:

“I do not rule out that we can temporarily reach 8% per month, depending on the development of events and the situation with the embargo on energy from Russia.”

Inflation for the period February 2021 – February 2022

In one year (from February 2021 to February 2022), significant price increases were recorded for:

• natural gas (78.5%),
• electricity (71.4%),
• fuel oil (41.5%),
• fuels and lubricants (23.2%).

At the same time, there was an increase in the cost of the so-called “food basket”, except for pork (-1%) and cold cuts (-2.2%):

• Coffee (24.1%).
• Oils and fats (16.8%).
• Vegetables (15.2%).
• Lamb and goat meat (14.4%).
• Fresh fruits (9.8%).
• Meat semi-finished products (8.1%).
• Bird (6.8%).
• Ice cream (6.5%).
• Dairy products and eggs (6%).
• Bread and cereals (5.9%).
• Other food products (4.4%).
• Beef (4.2%).
• Fresh fish (3.6%).
• Mineral water, soft drinks, fruit juices (1.7%).

At the same time, price increases were also recorded for:

• Passenger air transportation (22.9%).
• Used cars (11.5%).
• New cars (7.6%).
• Clothing and footwear (5.6%).
• Tires (4.9%).
• Mopeds-motorcycles (4.4%).
• Dental services (1.1%).
• Rental housing (0.7%). Very strange indicator in the report. Since, if we take for the period 2020-2022, the growth amounted to 100%.

PS Strange figure of 7.2% inflation. If core costs rose by an average of 30%, then why was official inflation only 7%? Or is it just a simple numbers game?

By the way, this does not remind you of the story of 2011, when Head of the Greek State Statistical Service convicted of forgery. However, in countries such as Greece, a person who has taken this position must understand that in fact this is a position zitzpound poundfrom The Golden Calf.

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