The government estimates that inflation will be even higher in June before its de-escalation in July
By Chrysostomos Tsoufis
New record in inflation of the country in the euro years is expected to be announced by ELSTAT on Thursdaywho will exceed 11% for May. The last time the country had inflation higher than 11% was in September 1994, 28 years ago.
Although inflation, as in the rest of the world, is fueled by rising energy prices, are the elements of inflation foods that cause the most concern. According to Eurostat, they were made in Greece in April the largest increases across Europewith 11.3% versus 7.7% of the Community average.
More specifically :
- Potatoes + 15.8%
- Meat + 14.3%
- Vegetables + 13.8%
- Bread + 13.1%
- Dairy + 11.1%
- Fruit + 7.9%
The government estimates that inflation will be even higher in June before it starts its de-escalation from July and that by the end of the year it will have stabilized at levels slightly below the Community average. According to the latest measurement, inflation in Greece was 2.6 points above that of the Eurozone.
The news from the food stock markets about the evolution in prices however, they cause chills. Estimates speak of an increase in its stock price wheat by 13.4% over a 12-month horizon. 37.5% analysts expect corn to grow, 12.9% coffee, 8% sugar and 7% cheese and poultry.
Naturally, the announcements are expected after June 15 by the government for Precision measures will not be limited to fuel. Among those examined are the reduction of VAT on some products more likely, however, seems a new check of accuracy to the most vulnerable.
Horizontal measures with tax reduction in this case are excluded. Firstly, because they cost a lot and there is no such fiscal space. Secondly, because they would favor even those who, despite the price increases, do not have much difficulty at a time when the government’s goal is to support the most vulnerable. And thirdly, it is extremely possible that such a measure that would cause budget imbalance, would “irritate” the markets, endangering the … national goal of obtaining an investment grade.
