Inflation: First decline in 15 months – At 11.6% in July

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On a monthly basis and in relation to June 2022, the index fell by 1.8%, when a month earlier it had recorded a negative rate of 1.4%.

The first retreat after 15 months was noted by inflation in Greece in July, according to the data published today Monday by the Hellenic Statistical Authority (ELSTAT).

In particular, the consumer price index last month ran at a pace 11.6%, from 12.1% in June. On a monthly basis and in relation to June 2022, the index fell by 1.8%, when a month earlier it had recorded a negative rate of 1.4%.

July marks the month that puts an end to a 17-month period in which inflation has moved upwards. This upward trend of the last 1.5 years started in March 2021 at -1.6% and with steady steps it has climbed last month to 12.1%.

It is recalled that according to Eurostat data, inflation in July showed a slight marginal slowdown of 11.5%, from 11.6% in June.

Nevertheless, in Greece the index continues to rise faster than the EU average, with energy prices continuing to rise much faster than the Eurozone: by 56.1% compared to a rise of 39.7% in the Eurozone , affecting the prices of other goods and services as well.

Two factors that may play a role in the estimated decline in inflation are the reduction in fuel prices after the high point found in June, as well as the reduction in the price of electricity due to government subsidies. Of course, as far as electricity is concerned, a greater positive impact on inflation is expected in August, since the new mechanism for electricity is in effect from August 1st.

The Commission’s forecasts for inflation in Greece are at 8.9% for 2022, which shows that price levels will remain high in the second half of the year as well. So far for the first half of the year inflation has been set at 9.3%, which means that, in order to verify the Commission’s forecasts, the second half of the year inflation should run at an average level of 8.5%

Its price natural gas is at 195 euros per megawatt hour, dragging electricity prices up across Europe. The European map has turned “red” with prices in most countries having climbed above €300/MWh. In Greece, for today, the price is at 350 euros/MWh, while in Lithuania it reached 516 euros/MWh.

However, the Greek economy currently shows that it is holding up, as GDP, tax revenues and tourism are showing positive signs, while the drafting of the new plan to support households and businesses against punctuality, which will be announced by the prime minister from the TIF at the beginning of September, with the Ministry of Finance even having a second supplementary budget in its drawer with the information talking about additional expenses close to 2 billion euros.

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