Greece’s inflation rate continued to rise in December, with annual consumer price growth reaching 2.9%, according to the latest data from Eurostat. This follows an increase to 2.8% in November, extending the upward trend after two months of easing inflation.
On a month-over-month basis, consumer prices rose by 0.2%, indicating continued price pressures toward the end of the year.
Greece’s inflation rate accelerates in December
Core inflation in Greece remained elevated at 3.2% in December, signaling persistent underlying price pressures. Service prices rose sharply by 4.5%, underscoring sustained domestic demand.
By contrast, energy prices declined by 1%, while non-energy industrial goods prices edged down by 0.1%. Food prices, including alcohol and tobacco, increased by 3.5%, continuing to strain household budgets.
Eurozone inflation stabilizes near ECB target
Across the Eurozone, preliminary estimates from Eurostat show that the harmonized consumer price index stood at 2.0% in December. This represents a modest decline from 2.1% previously and keeps inflation near the medium-term target of the European Central Bank.
Overall, the data suggests that inflation at the aggregate level remains broadly contained, despite notable sectoral differences.
Sector breakdown: Services remain main driver
Within the Eurozone, services continued to make the largest contribution to overall inflation, rising by 3.4% year on year in December, slightly below the 3.5% recorded in November.
Prices for food, alcohol, and tobacco increased by 2.6%, accelerating from 2.4% a month earlier. Non-energy industrial goods showed limited price pressure, rising 0.4%, compared with 0.5% in the previous month. Energy prices returned to negative territory, registering an annual decline of -1.9% in December, a sharp reversal from the 0.5% increase seen in November.
ECB policy outlook remains steady as Greece’s inflation rate stays elevated
At its December meeting, the ECB (European Central Bank) left interest rates unchanged for the fourth consecutive time and revised its growth projections upward. ECB President Christine Lagarde adopted a more optimistic tone, citing improved economic resilience despite ongoing global trade disruptions.
She also highlighted stronger private-sector investment, attributing part of this momentum to advances in artificial intelligence, which she identified as a positive factor for the Eurozone’s medium-term economic outlook.
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