Government frets about July inflation figures
Government officials are awaiting Friday’s announcement of July inflation figures by the independent statistics authority ELSTAT with some trepidation.
Last Wednesday, European statistics agency Eurostat announced its estimate for Greece’s harmonized index of consumer prices, which differs from the Consumer Price Index, and the results jolted officials: July’s index was estimated at 3%, up from 2.5% in June.
Officials had been quick to celebrate Eurostat’s June figure but were noticeably silent this time around.
There are several factors pointing out to continued inflationary pressures: High temperatures will negatively impact production and prices of fruits and vegetable, the so-called “plague” afflicting sheep and goats will raise their prices and a likely hike in oil prices will affect most sectors, including farming.
The continuing crisis in the Red Sea due to the attacks of Houthis on commercial ship[ping, which officials had hoped would prove temporary will also affect transport costs which will eventually be borne by consumers.
