Inflation in Greece Fell to 2.7% in July

Greece experienced a notable slowdown in inflation during July, with the harmonized consumer price index falling to 2.7%. This marks a significant decrease from the 3.9% recorded in June, according to estimates from Eurostat, the statistical office of the European Union.

This deceleration is particularly significant as it positions Greece's inflation rate below the Eurozone average for July, which stood at 2.9%. This contrasts with previous months where Greek inflation had consistently exceeded the broader European average. The cooling inflation is attributed to several factors, including a reduction in food prices and more contained increases in fuel and service costs, despite the peak tourist season.

Economists and analysts note that while this is a positive development, it does not guarantee a continued downward trend. They point to the resurgence of hostilities in the Middle East and the potential for secondary effects from earlier inflationary shocks as factors that could impact future inflation rates. The impact of the spring's inflationary shock is not yet fully reflected.

Detailed Eurostat data reveals that food prices, including alcoholic beverages and tobacco, decreased by 0.3% year-on-year in Greece in July, and by 2.2% compared to June. This decline is largely due to falling prices for fresh produce, while standardized food prices saw less significant increases, partly due to price caps and agreements. However, energy inflation in Greece remains a concern, standing at 13% in July, although lower than in previous months. This is influenced by global oil prices and Russian diesel export halts, with government interventions having a limited impact on retail prices.

“

This performance in no way predicts the course of inflation in the near future, especially as we are now in a phase of renewed hostilities in the Middle East and furthermore, the secondary effects of the spring's inflationary shock have not yet appeared significantly.