Inflation persists at 3% level
The harmonized consumer price index posted worrying 1.7% monthly growth in September
Inflation in Greece is proving to be persistent and with a significant deviation from that of the eurozone, as despite the slight slowdown in its growth rate it remained at the level of 3% in September, while at the same time in the eurozone it stood at 1.8%.
Although this is not the first time that a large discrepancy has been observed between the harmonized consumer price index in Greece and the corresponding one in the eurozone, it is the largest spread recorded in the last 12 months (1.20 percentage point).
Lying behind the persistence of inflation in Greece there are contemporary factors such as the increase in demand for services and foodstuffs during the tourism season, which have a high weighting in the domestic “basket.” On top of that are structural problems of the Greek economy, such as the high dependence on energy imports, primary and secondary materials, final goods, the lack of competition and the pricing strategy of businesses, as shown by a recent study by the Bank of Greece.
According to the estimates for the evolution of the harmonized index of consumer prices in the month of September, which Eurostat announced on Tuesday, in Greece it stood at 3% against an annual change of 3.2% in August.
This is the fourth highest inflation in the eurozone in September, with Belgium in first place (4.5%), followed by the Netherlands (3.3%) and Estonia (3.2%). In the eurozone, it stood at 1.8% from 2.2%, registering a significant slowdown in the growth rate.
What’s more worrying in Greece’s case is the notable increase in the index on a monthly basis, as in September 2024 compared to August 2024 it increased by 1.7%, the largest monthly increase in the eurozone, where, on the contrary, there was a marginal reduction (-0.1%).
This is largely related to the Greek price hikes in September for fresh fruit and vegetables, fresh fish, etc, the former being attributed to the adverse weather conditions of the previous months (high temperatures for an extended period), which dealt a blow to domestic production.
