Inflation seen rebounding
Eurostat estimated on Tuesday that European Union-harmonized inflation rose considerably in October to reach 3.9%, which is mainly attributed to food price hikes after a few weeks of natural disasters that mainly struck central Greece.
At the same time, inflation in the eurozone was at its lowest level in the last two years, further strengthening hopes that the European Central Bank will not be required to return to the practice of raising interest rates.
According to provisional Eurostat estimates, Greece’s harmonized index of consumer prices was 3.9% year-on-year October, the eighth highest among the member-countries of the eurozone. In September 2023 the harmonized consumer price index in Greece was at 2.4% and the national consumer price index at 1.6%.
On a monthly basis, Eurostat estimates that the harmonized index of consumer prices in Greece increased by 0.2%. However, the figures of the Hellenic Statistical Authority for October inflation are to be announced on Friday, November 10.
At the eurozone level, inflation stood at 2.9% in October from 4.3% in September, with two member-states entering a negative inflation environment, Belgium and the Netherlands, where the harmonized index of consumer prices fell 1.7% and 1% respectively. The latter is possibly a result of the comparison with last October, when energy prices had skyrocketed, with inflation reaching 16.8% in the Netherlands and 13.1% in Belgium (base effect). Of course the decline in prices, although it is happening at a slower rate than initially predicted, also hides the conditions of a slowdown, if not a recession, of the European economy.
According to Eurostat data, the largest price increase in October was recorded in the group “Food – alcoholic beverages – tobacco” and was 7.5%, after an annual increase of 8.8% in September. In “Services” a price increase of 4.6% was recorded against a 4.7% increase in September. Energy prices at the eurozone level fell 11.1% in October 2023 from October 2022 from a 4.6% decrease in September. In Greece energy prices fell 6.9% annually in October.
