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January Inflation in Greece at 5.5% warns the Eurostat

With 5.5% in the European Union harmonized index, inflation in Greece can break a record after 11 years, the Eurostat announced on Wednesday, predicting a further rise in the weeks to come and the wave of price hikes is growing without stop.

The Eurostat predicts that inflation will reach 5.5% in January from 4.4% in December 2021. This means a nightmare of 1.1% increase in the first month of 2022.

The Eurostat estimates indicated that the Greek inflation rate rose by more than one percentage point in a single month, from 4.4% in December 2021.The price index in Dec was 5.1%

If the Eurostat estimates are confirmed by the Greek Statistics Authority, the index will have recorded its highest reading in the last 11 years. The last time it had climbed so high was in September 2010, hitting 5.7% – kathimerini.

The relevant announcement by the Greek Statistics Authority ELSTAT is scheduled on February 15.

These figures appear to be confirmed in the local market, notes daily kathimerini.

The cost of electricity, food and agricultural raw materials remains high, and is now followed by hikes in liquid fuel. The recent cold snap has already triggered price increases in fresh fruit and vegetables, while geopolitical developments in Eastern Europe – and the mounting tension between Russia and Ukraine – leave little room for hope for a decline in energy rates anytime soon.

IRI market researchers found that supermarket prices in the week that ended on January 16 had risen by 5% from the same period in 2021. Food prices in general showed a 1% year-on-year increase, but in dairy products and packaged food the hike came to 3% and in soft drinks, tea and coffee to 2%. In commodities outside the food category, the rises averaged at a remarkable 11%.

The Development Ministry’s Fuel Price Observatory, meanwhile, showed that on Tuesday the average rate of gasoline came to 1.831 euros per liter (against €1.746/lt a month earlier) and diesel to €1.572/lt (from €1.481/lt).

Note: average rate across Greece in August 2012 amid the bailout and economic crisis was €1.838. The price of Brent was $100/barrel, while it is at $89 today.

Daily naftemporiki and other media blame the Special Consumption Tax on fuel that bring their prices to the highest level among EU countries.

  • 60% of the total price are taxes.

This is the reason Greece is among the EU’s top countries with high fuel prices, usually after The Netherlands, Finland and Denmark, notes the daily adding the obvious: that in these countries the average income is also much higher than in Greece.

 

While the average price was at €1.831 in Attica (1.807) and Thessaloniki (1.801) outside these two big cities prices are out of control.

Price of 95 octanes was over 2 euros per liter (2.034) in Cyclades and 1.969 in Dodecanese. In many regions on the mainland, one can hardly find the liter below 1.9 euros, notes naftermporiki

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