Greece sees inflation rise to 6.2% in Jan; highest rate in 25 years
Inflation rose to 6.2% in January 2022, Greek Statistics Authority ELSTAT announced on Tuesday. Prices for energy and commodities continue to climb also in February, striking a blow to citizens pockets.
Inflation started to rise in Greece since September 2021 and last month the European Statistics Eurostat had warned about the climbing rate in the country.
The Hellenic Statistical Authority (ELSTAT) announces the revised Consumer Price Index with reference year 2020=100.0 of January 2022.
CONSUMER PRICE INDEX: January 2022, annual inflation 6.2% The evolution of the Consumer Price Index (CPI) of January 2022 (reference year 2009=100.0) is depicted as follows:
The CPI in January 2022 compared with January 2021, increased by 6.2%. In January 2021, the annual rate of change of the CPI was –2.0%.
The CPI in January 2022 compared with December 2021, decreased by 0.3%. In January 2021, the monthly rate of change of the CPI was –1,3%.
The average CPI for the twelve – month period from February 2021 to January 2022, compared with the corresponding index for the period February 2020 to January 2021 increased by 1.9%. The annual rate of change of the average CPI between the twelve – month period February 2020 to January 2021 in comparison to the period February 2019 to January 2020 was –1.5%
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It is characteristic that during the last quarter the average price for potatoes has increased by 47%, for spaghetti 23%, for olive oil over 10%, for fresh milk and cheese 8%, for cold cuts 5% and for detergents 4%, at the level of prices in supermarkets. It is worth noting that the data come from e-katanalotis.gov.gr.
When food items constitute 35.9% of the total monthly expenditures of the poorest households, based on the data of the Family Budget Survey of the Hellenic Statistical Authority, the price increases in basic food products become unbearable.
It is worth noting that according to the IOBE Economic Conjuncture survey for the month of January, the percentage of consumers who state that “they make it to the point” reached 65%.
The next months will be difficult
Inflationary pressures on energy, travel, heating costs that push family budgets show that they will remain in the coming months.
After all, in the data recently published by the European Commission, the inflation forecast in Greece reaches 3.1% (0.8% of the budget forecast) for 2022, while the previous one was only 1%. It is worth noting that this assessment is fully in line with the latest BoG, which rang the alarm bell.
According to recent Eurostat estimates released, the harmonized index of consumer prices in Greece in January is projected to reach 5.5% compared to an annual change of 4.4% in December 2021. If the Eurostat estimate is confirmed. It is worth noting that the last time the harmonized index of consumer prices was formed at levels above 5% was in December 2010 (5.2%), while in the same year it had reached 5.7% (September 2010). Of course, it is worth remembering that nominal salaries in Greece were higher in 2020 compared to today.
Import inflation is also high
The so-called imported inflation marked a dizzying rise for another month in Greece, mainly due to the increase in oil prices.
In particular, according to ELSTAT, the General Price Index of Industry in December 2021, showed an increase of 23.6% compared to the corresponding index of December 2020.