According to Bank of Greece forecasts, inflation in the country will remain above 2% until 2026. This exceeds the limit set by the European Central Bank.
In its Inflation Monitor report released today, the bank forecasts inflation to be 2.9% in 2024, 2.2% in 2025 and 2.1% in 2026.
State Budget Project for 2025, submitted last week to parliament's standing committee on economic affairs, forecast inflation at 2.7% this year and 2.1% next year.
According to a report by the national Bank of Greece (ET), the decline in inflation this year is due to a sharp drop in prices for basic energy resources and a de-escalation of food inflation. Service sector inflation is expected to be the most resilient component, reflecting expected large wage increases. Besides nominal wages per worker are reported to be growing at a rate of just over 5% per year.
In September, prices for industrial resources in our country continued to rise for the 14th month in a row, which was due to rising prices for energy, transport and some types of raw materials. However, the pace of growth slowed to its slowest since April. As a result, higher costs were passed on to consumers, resulting in product price inflation, but at the slowest rate in the last 12 months.
A preliminary economic forecast published in October shows that In most developed eurozone countries, inflation is expected to decline and approach 2% in 2024-2025.. Compared to the previous month, figures were slightly higher for several countries, the World Bank's Inflation Monitor noted.
As already mentioned, The labor market remains tight in both the eurozone and Greece. Although demand for labor is slowing, it remains high and unemployment is at historically low levels. At the same time In the eurozone, nominal wage growth is slowing.
More Stories
Profile of foreigners buying holiday homes in Greece. Criteria for their selection
Tax Service: 33 properties put up for auction
Increase in butter prices in the EU