Inflation in Greece is approaching 1993 levels, when the consumer price index rose by 12%, according to the latest official report. ELSTAT, which places the May CPI at 11.3%. Recall that in 1994 inflation was at the level of 10.7%.
ECB: downgraded growth forecasts – sees further rise in inflation
It is reported that the ECB at its meeting lowered its growth forecast for the eurozone and revised its inflation forecast upwards. Annual inflation is expected to reach 6.8% in 2022, falling to 3.5% in 2023 and 2.1% in 2024. This means a significant increase from the March forecast of 5.1% in 2022, 2.1% in 2023 and 1.1% in 2024.
Growth forecasts have been significantly cut to 2.8% in 2022 and 2.1% in 2023, and revised slightly to 2.1% in 2024. The above can be compared to the forecasts at the ECB meeting in March: 3. 7% in 2022, 2.8% in 2023 and 2.1% in 2024.
New drop in sales in supermarkets in May due to rising prices
In Greece, data from Nielsen IQ, a company that measures sales in Greek supermarkets, shows that in the five months of 2022, through May 29, sales in value terms fell by 2% compared to the same period last year due to lower demand and as a result of higher product prices. The Nielsen measurement captures the total sales of supermarkets and discount chains (Lidl). In particular, sales in Greek supermarkets fell from 4.58 billion euros in the first five months of 2021 to 4.49 billion euros in the first five months of 2022. The losses are even bigger in terms of sales volume as recent estimates are also included. At the same time, sales of consumer goods lost value: from 3.2 billion euros in 2021, they reached 3.13 billion euros in the first five months of 2022 with a change of -2.3%, and this is taking into account price increases in by an average of 20% this year.
Hadziteodosiu: inflation in July will exceed 12%, fuel will become more expensive than 3 euros per liter
As the president of the Athens Chamber of Commerce, Yiannis Hatziteodosiou, stated in capital.gr, “The bottom line is that, based on what we have in mind, inflation will exceed 12% in June with a new increase in the cost of essentials. The data shows that we will have a new surge in price increases, and there are no measures to stop them. The increase in the cost of fuel, food and energy dominates. “From 3 euros per liter. Many companies will find it difficult to survive and meet their obligations. Energy subsidies, which are expected to be implemented, will have to at least partly cover this price increase.”
11% decline in sales of small and medium-sized supermarkets
For his part, the president of small and medium-sized supermarkets in Greece, Yannis Pilidis, said capital.grthat five-month sales in value terms averaged 0% compared to last year. “Practically, however, taking into account the fact that currently the price increase of the products we sell is 11% on average, this also means that the consumer buys on average 11% less in volume of the product, since the turnover is stable comparing with the previous year”.
Already at this time, according to Mr. Pilidis, during May and June, price increases were announced for many product categories: categories. In most categories, the new price increase is between 5% and 6%, except for office supplies where the price increase is between 10% and 15%. We bought the stationery that we can store at the old price and therefore the price increase will not be immediately visible on the market.”
The average price is 2.38 euros, or how much unleaded gasoline at gas stations
For her part, the president of Attica gas stations, Maria Zagka, demands that priority in state support be given to unleaded gasoline with a reduced selling price at gas stations, as an antidote to the constant increase in fuel prices: “The average price at gas stations is 2.38 euros per liter, with the price per barrel of oil is at the level of 122 dollars. Forecasts even speak of $150 per barrel from September, which could push the price of unleaded gasoline up to 3 euros per liter in Attica and significantly more in the regions.”
“Currently we are selling a liter unleaded gasoline for 2.346 euros, while two days ago we sold a liter for 2.285 euros,” she adds.