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Inflation in Greece Hits Double Digits at 10.2 Percent

Inflation Greece
The significant rise in Greek inflation in April follows the pandemic and now the Russia-Ukraine conflict, which has driven fuel prices much higher. Credit: Greek Reporter

Greece’s annual consumer inflation jumped to its highest level in 28 years in April at 10.2 percent on the back of surging costs for energy, housing, transportation and foods, official data showed on Tuesday.

The increase of inflation by 2.1 percent in April 2022, compared to the corresponding index of March 2022, came mainly from changes in the following groups of goods and services, according to ELSTAT:

  • 2.5 percent in the group food and non-alcoholic beverages due mainly to increases in prices of bread, beef, pork, lamb and goat, poultry, whole milk, yogurt, cheese, eggs, oils and fats, fresh vegetables, frozen vegetables, and coffee. Part of this increase was offset by the reduction in prices mainly in pasta and fresh fish.
  • 14.1 percent in the clothing and footwear group due to the return of prices to the levels before the winter discounts
  • 4.0 percent in the housing group due mainly to increases in the prices of electricity, natural gas, and heating oil
  • 0.4 percent in the group durable goods-household items and services due mainly to increases in prices of direct goods household consumption
  • 0.3 percent in the transport group mainly due to price increases in new cars and petrol. Part of the increase is offset by the reduction of prices mainly in diesel and passenger transport tickets along with airplane tickets
  • 0.6 percent in the leisure-cultural activities group due mainly to an increase in prices on vacation packages
  • 0.9 percent in the group hotels-cafes-restaurants

Inflation in Greece is fueled by the Russia-Ukraine conflict

Price increases are fueled by the Russia-Ukraine conflict with the cost of Russian energy and Ukrainian grain dramatically spiking. Businesses and households continue to face a massive wave of increases with the government struggling to reel them in.

The Greek government set an inflation target in its 2022 budget for 1 percent, but it’s clear that is unachievable with Greek Finance Minister Christos Staikouras recently estimating that it will now be set at 4 percent.

In early April, trade unions in Greece held a general strike in protest against rising prices that have reduced the disposable incomes of workers.

Public and private sector unions ADEDY and GSEE had mobilized against the price hikes in energy, food, and bread items and demanded urgent protection of society and a rise in the minimum wage.

“We will not accept the continuation of huge increases in electricity, oil, gas, bread, and all kinds of public goods so as not to affect the profitability of business conglomerates,” ADEDY said in a statement at the time.

Related: Gas Prices in Greece: Cheaper to Fly to Paris Than Drive to Thessaloniki

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