Inflation falls to 8.5% in November

Inflation eased in November to 8.5% from 9.1% in October, the Hellenic Statistical Authority reported on Friday, confirming the trend also seen in Eurostat’s provisional harmonized index data.

The slowdown is largely the result of a base effect, as energy prices now compare to November 2021, when their rally was in full swing.

Also, the support of electricity tariffs by the government plays a decisive role, as a result of which prices are reduced compared to November of the previous year by 5.3%. In heating oil the increase is 11.6% and in natural gas 27.8%, having grown much faster before (at 332% in September) and in solid fuels 23.2%. Overall, the housing category, which includes energy goods and housing rent, saw an increase of only 4.8%. On the other hand, food price hikes continue, in an indication that the cycle of inflationary pressures has not closed. The food and non-alcoholic beverages category saw an increase of 15%, mainly due to price increases in bread and cereals (18.7%), meat (16.7%), dairy and eggs (25.3%), oils and fats (20.4%), vegetables (12.6%), coffee, cocoa and tea (11.9%).

Clothing and footwear (10.9%), as well as durable goods (11%), and the transport category (14.5%) also recorded a double-digit increase. The cost of air travel has increased by 42.3% in one year, by boat by 26.7% and by taxi by 32.9%.

In hotels, the increases reached 14.5%, while the category of cafes and restaurants moved lower, at 7%. In alcoholic beverages and tobacco, increases were limited to 2.8%, as was the health sector, which includes medicines and medical services. Cinemas and theaters got 14.3% more expensive, while in primary and secondary education the increases were limited to 2.6%. Finally, at hair salons and personal care stores, the increase was restrained to 2.7%. There was also one more category where prices were reduced compared to the previous November: Telephony services got 2.1% cheaper, according to ELSTAT data. 

The average index of the December 2021 – November 2022 period showed an increase of 9.5% from the previous 12 months, so it seems likely the 2023 budget forecast for average inflation this year to reach 9.9% will be confirmed.