Inflation: At a 29-year high with an increase for the 13th month in a row

of Chrysostomos Tsoufis

Inflation in the country set a 29-year record after the 12.1% announced by ELSTAT. Not since December 1993 had the country seen such high inflation, which rose for the 13th consecutive month.

Champions according to the announcements of the Authority are of course the energy products. On an annual basis, natural gas has risen by almost 118%, electricity by 70%, heating oil by 65% ​​and fuel by 45.6%. However, on a monthly basis, in relation to May, that is, natural gas and electricity moved downward.

The rates of appreciation are also stable and rising in double digits foods. Oil has risen in price by 25% since last year, bread by 16%, dairy and eggs by 15.5%, vegetables by 11.3%.

The services stand out transport by airplanes with inflation of 48.5%, 33% for taxis due to the increase in fares, almost 28% for hotels and 14% for cinemas.

The million dollar question is whether this is the peak of the payer’s run or whether it will continue to run with broken brakes. The landscape is blurry.

In the first week of July, the price of natural gas has increased by €41 (about 28%). The industrial producer index also portends price increases as it takes some time for prices to pass through to retail. It reached 43% in May, while it reached 48.8% in April. In addition, many businesses try due to the summer and therefore increased activity to hold down prices and seeing and doing from September.

On the contrary, the price of oil internationally has fallen somewhat, around 5 dollars (around 4.5%) due to the fear of a global recession, while the index will also be restrained by the measure of the suspension of the readjustment clause from August 1st. For July alone, €720 million will be spent on subsidies.

The Bank of Greece currently estimates a gradual decline in the index, predicting inflation for this year at 7.6%. Rather more pessimistic, IOBE considers that it will persist very high for a few more months before starting to decline, estimating an average for this year between 9% and 9.6%.

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