Greek Inflation Rate Soared to 11.3 percent in May

Much like in many parts of the world, the inflation rate in Greece has soared to its highest rate in nearly thirty years this month.

The Greek inflation rate reached 11.3 percent in May alone, which is up from 10.2 percent in April and 0.1 percent in May of last year, according to data released by the Hellenic Statistical Authority on Thursday.

The soaring Greek inflation rate is likely due to price increases for goods and services in the country in general, particularly for energy.

Increased energy, food prices

The cost of natural gas rose by 172.7 percent, and electricity went up in price by 80.2 percent. Heating oil and fossil fuels experienced a 65.1 percent and 5.4 percent increase in cost, respectively.

These rising costs for energy led to increased prices in other sectors, as fuel-lubricants rose in cost by 36.6 percent, while air and ship travel rose by 22.8 percent and 17.7 percent, respectively.

Apart from fuel and energy prices, everyday household goods also experienced a major price jump in recent months. Oil prices rose by 23.2 percent, the cost of dairy and eggs jumped by 14.1 percent and meat by 13.8 percent.

Cereals, vegetables, fish, and fresh fruit jumped in price by 13.4 percent, 13 percent, 4.1 percent, and 10.8 percent, respectively.

The price of drinks such as coffee and tea rose by 6.3 percent while water, beverages, and fruit juices jumped by 5.6 percent. The cost of sugar, chocolate, and ice cream increased by 4.7 percent. The price of alcohol also jumped by 2.1 percent.

The cost of staying in a hotel jumped by 22.2 percent while going to the cinema or theater became 13.9 percent more expensive.

Both used and new cars increased in price by 11.5 percent and 8.7 percent, respectively while transport costs in general increased by 18.8 percent.

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 this 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.