Greece: inflation 3.5% in December

Inflation rose 3.5% in December, adding to strong concerns among both citizens and the government about the dynamics of rising prices.

Although ELSTAT stated that the overall Consumer Price Index (CPI) in December compared to November 2023 showed a decrease of 0.1% compared to a decrease of 0.5% in the same period last year, inflation according to the European statistical agency (Eurostat) was 3.5%.

The average CPI for the twelve months from January 2023 to December 2023 compared with the corresponding CPI for the twelve months from January 2022 to December 2022 showed an increase of 3.5% compared to the 9.6% increase recorded in the corresponding twelve month comparison from January to December 2022 with twelve months from January to December 2021, but the real increase in food prices since 2021 was more than 137%.

The impact of inflation on the economy and the role of energy prices

The data published by ELSTAT confirms the initial picture presented by Eurostat, which showed an increase in inflation in December in Greece and throughout the Eurozone. Eurozone inflation rose to 2.9% in December from 2.4%, while in Greece it rose to 3.7% from 2.9% the previous month, according to preliminary Eurostat data.

In recent days, Greek authorities have shifted attention from steadily rising food prices to the high profit margins of multinational corporations, the battle of rates with credit notes and the significantly increased prices of Greek households for laundry detergents, household cleaning products and personal care products. In addition to baby milk and diapers, with which the saddest situation is observed.

The government expects that, thanks to the measures it has announced and is preparing to implement, prices for 2,000 codes will be reduced by March, as Development Minister Kostas Skrekas calculated yesterday*.

Rising prices

The ELSTAT data regarding rising food prices is revealing. Prices for olive oil increased by 58.5%, for fruits by 15% and for vegetables by 14%. Prices for mineral water and soft drinks increased by 12.6%. Medicines rose in price by 11.8%, and air tickets by 10%.

On the other hand, the price of natural gas fell 52.9% (but the price of transportation increased, leaving final prices virtually unchanged), but it was the only product that recorded a year-over-year decline.

However, over the month, prices for fresh vegetables increased by 5.7%, for olive oil – by 4.7%, and for fresh fish – by 2.2%.

Comparison by year

The increase in the overall CPI by 3.5% in December 2023 compared to the corresponding Index in December 2022 was mainly due to changes in the following groups of goods and services:

1. Price increases for:

• 8.9% in the “Food and non-alcoholic drinks” group, mainly due to rising prices for bread and cereals, meat (in general), fish (in general), dairy products and eggs, olive oil, fruits (in general ), vegetables (in general), sugar, chocolate – sweets – ice cream, other food products, coffee – cocoa – tea, mineral water – soft drinks – fruit juices.
• 2.2% in the “Alcoholic beverages and tobacco products” group, which is mainly due to rising prices for alcoholic beverages (not served).
• In the Clothing and Footwear group, the growth was 2.8% due to rising prices for clothing and footwear.
• 1.9% in the Durable Goods-Household Goods and Services group, due to rising prices mainly for furniture, decorative items and flooring, household goods for immediate consumption, and household services.
• 5.5% in the “Health” group, mainly due to rising prices for pharmaceutical products, medical, dental and paramedical services, and hospital care.
• 0.3% in the Transport group, mainly due to rising prices for new cars, used cars, auto parts and accessories, maintenance and repair of personal vehicles, and air tickets. This growth was partially offset by lower prices, mainly for fuels and lubricants.
• 2.6% in the Leisure-Cultural Activities group, mainly due to rising prices for durable goods, small recreational items, flowers, pets, cinemas, theaters, travel packages. This increase was partially offset by lower prices, primarily for audio and video processing equipment.
• 3.5% in the Education group, mainly due to rising prices for fees for pre-school and primary education, fees for secondary education and higher education.
• In the “Hotels-Cafes-Restaurants” group, the growth was 5.9%, mainly due to rising prices in restaurants-pastry shops-cafes-canteens, hotels-motels-hotels.
• 1.7% in the “Other goods and services” group, mainly due to rising prices for hairdressers and personal care stores, other personal care items, health insurance premiums, vehicle insurance premiums.

2. Reducing the index by:

• 0.5% in the Housing group, mainly due to lower natural gas prices. This decrease was partially offset by rising prices, mainly for rental housing, repairs and maintenance of houses, fuel oil, and solid fuel.
• In the Communications group – 3.2%, mainly due to lower prices for telephone services.

Price increase for December 2023

A decrease in the consumer price index by 0.1% in December 2023 compared to November was mainly due to changes in the following groups of goods and services:

1. Reduced prices for:

• In the group “Alcoholic beverages and tobacco products” 1.2%, mainly due to lower prices for alcoholic beverages (not served).
• In the Housing Construction group, 0.7%, mainly due to lower fuel oil prices. This decline was partially offset by rising electricity prices.
• In the “Transport” group 1.6%, mainly due to lower prices for fuels and lubricants and air passenger tickets.
• In the “Other goods and services” group, 0.2%, mainly due to lower prices for other personal hygiene items.

2. Increase in prices for:

• 0.3% in the “Food and non-alcoholic beverages” group, mainly due to rising prices for poultry, fresh fish, olive oil, fresh vegetables, canned or processed vegetables. This growth was partially offset by lower prices for pork, cold cuts, fresh fruits, frozen vegetables, and coffee.
• In the Clothing and Footwear group, the growth was 1.3% due to rising prices for clothing and footwear.
• 0.9% in the “Durable Goods-Household Goods and Services” group, mainly due to rising prices for household appliances and their repairs, household consumer goods.
• 0.4% in the Leisure-Cultural Activities group, mainly due to rising prices for audiovisual equipment and computer repairs.
• In the “Hotels-Cafes-Restaurants” group – 0.7%, mainly due to rising prices in restaurants-pastry shops-cafes-canteens, hotels-motels-hotels.

Table: Main price changes resulting from comparison of December 2023 with December 2022 and their impact on the overall CPI

Price changes for the period from December 1 to December 31

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