Significant de-escalation of inflation in October

By Chrysostomos Tsoufis

A significant de-escalation was seen in October inflation according to the data published by ELSTAT. It fell to 9.1% from 12% (2nd highest value for this year) found in September, following the trend shown by the harmonized index according to Eurostat measurements. It is certainly still significantly high causing many problems in household budgets since (any) wage increases are significantly lower.

The most important reason for the country’s return to single-digit inflation levels has, of course, to do with the de-escalation of energy costs. It is typical that natural gas recorded an increase of 68.4% when 2 months ago, in August, the increase was 4 times with 263.5%. Electricity recorded an increase of 20.8%, fuel 17.8%, heating oil 20.8% and electricity (just) 7.4% when in August it was 38.5%.

The second major cause of de-scaling is the calculation base which is now higher. If one looks at the statistics carefully, one will see that last October is the first month of 2021 that the country broke the 3% barrier. The comparison is different when last year’s corresponding month had negative inflation and different when it shows heights of 3.5%.

Nevertheless, it is worrying that food price appreciation rates persist…in double digits. 16.6% since last year oil has risen in price, 19.3% bread, 24.2% dairy and eggs, 17.3% meat, 13.2% vegetables and 13.4% coffee and tea.

Although it is October, the price hikes in the tourist package and transport are stubbornly very high. At 30.6% compared to last year, the increase in the price of transport by plane, at 26.7% for transport by ship and at 20.2% the increase in the cost of accommodation in hotels, motels and inns. In addition, taxi services have increased by almost 33%.

Just as it did not panic with the 12th of September, the government is not celebrating now with the de-escalation of inflation. He maintains a wait-and-see attitude as new fuel subsidies are currently planned while he also wants to see the impact of the household basket initiative. In addition, for December, through the heating allowance, the punctuality check and the abolition of the solidarity levy, it is preparing an injection of liquidity into the market of around 900 million euros.

Read the News today and get the latest news.
Follow Skai.gr on Google News and be the first to know all the news.