Shock: food prices will rise again by 12.3%

It seems that the inhabitants of Greece are participating in some kind of terrible race “not for life, but for death.” Inflation picked up again in July, with no end in sight to the price rally.

After falling below the 2% mark in June (1.8%), the annual consumer price index stood at 2.5% last month as food prices jumped another 12.3%.

Fruits, vegetables and pharmaceuticals are leading the price race. Food prices are supported by the war in Ukraine (rising prices for grain, energy, etc.), climate change (rains, heat, fires caused damage to production). However, there is also a labor shortage.

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According to the data ELSTATfruit prices recorded an increase of 19.4% compared to July 2022, vegetables – by 15.5% compared to last year, dairy products, eggs – by 14.4%, meat – by 10.9 %. Double-digit growth recorded in mineral water, soft drinks and fruit juices, sugar, chocolate, sweets and ice cream, and oils and fats.

Medicines (18.7%) and air travel (11.6%) rose in price, while the housing sector, on the contrary, recorded a large drop of 11.8%, mainly due to lower prices for electricity, natural resources, gas and liquid fuel (in contrast to the rent, the growth of which “went uphill”).

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Households are facing renewed increases in food and essentials prices, which, combined with rising fuel prices, create an explosive cocktail.

In particular, the increase in the general consumer price index by 2.5% in July 2023, compared with the corresponding index in July 2022, was mainly due to an increase in the following groups of goods and services by:

• 12.3% in the “Food and non-alcoholic drinks” group, due to an increase in prices mainly for bread and cereals, meat, fish, dairy products and eggs, oils and fats, fruits, vegetables, sugar, chocolate, sweets, ice cream , other food products, coffee-cocoa-tea, mineral water, soft drinks, fruit juices.
• 3.4% “Alcoholic beverages and tobacco products”, due to rising prices for alcoholic beverages.
• 5.2% in the “Clothes and footwear” group, due to the increase in prices for the corresponding goods.
• 6.4% “Durable goods” – household goods and services, due to rising prices mainly for household appliances and repairs, glassware – dishes and household utensils, household goods for direct consumption, household services.
• 7.8% in the Health group, mainly due to rising prices for pharmaceutical products, medical, dental and paramedical services, inpatient treatment.
• 3.5% in the “Leisure-cultural activities” group, due to an increase in prices mainly for durable goods for recreation and cultural leisure, small goods for recreation, seedlings-flowers, pets (food and care for them), tickets to cinemas-theatres, tourist vouchers.
• 2.2% “Education”, by increasing the prices for the corresponding services of teachers.
• 6.2% “Hotels – Cafes – Restaurants”, due to rising prices for services and products.
• 3.6% in the “Other goods and services” group, mainly due to rising prices in hairdressing and beauty salons, for personal hygiene items, other personal items, insurance premiums for health insurance, insurance premiums for a vehicle.

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July inflation would have been even higherif prices in three key categories had not fallen significantly:

• 11.8% in the “Housing” group, due to lower prices for electricity, natural gas, fuel oil. Part of this decline was offset by rising prices for housing rents, home repairs and maintenance, utilities, LPG, and solid fuels.
• 3.7% in the “Transport” group, due to lower prices for fuels and lubricants. Part of it the decline was compensated rising prices for new cars, used cars, mopeds, motorcycles, auto parts and accessories, maintenance and repair of personal vehicles, air passenger tickets.
• 2.8% in the Communications group, mainly due to lower prices for telephone services.

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