Inflation slows on energy prices
Greece’s headline inflation rate eased slightly in August, moving away from a 10-year high, due to falling energy prices, with a further slowdown on the cards in coming months, according to economists. The National Statistics Service (NSS), Greece’s statistical office, said inflation decelerated in August to 4.7 percent year-on-year from 4.9 percent previously. The figure, however, remains almost a full percentage point above the eurozone’s average figure which stood at an estimated 3.8 percent last month. Housing costs, including rentals and maintenance fees, rose 10.8 percent last month and transport charges advanced 6.5 percent. Food and non-alcoholic beverages advanced 4.5 percent while a further breakdown of figures shows bread and pasta prices jumping by 17 and 27 percent respectively for the same period. «Inflation fell by 0.2 points in August, reflecting the easing of energy prices in the month by about 3 percent, which is a result of falling global oil prices,» Nicholas Magginas, an economist at National Bank, told Reuters. Among the items to show a price drop were also fresh vegetables, which retreated almost 18 percent. and the cost of cars. which retreated by almost 2 percent. »Over the next few months, inflation is expected to fall, especially in the last quarter of the year, as long as global oil prices remain at present levels, offsetting planned price hikes in certain goods and services in September,» added the economist. Greece’s EU-harmonized inflation rate for August also retreated slightly to 4.8 percent from 4.9 percent in July. The government recently revised its inflation forecast for this year, expecting it to average out at 3.5 percent from a previous 2.8 percent, to reflect stronger-than-expected upward price pressures. The Development Ministry has put together a list of 41 measures to battle inflation, including stepping up price checks to catch profiteers. Violators have been threatened with hefty fines and being put on a black list.
