Annual inflation in Greece leaped to a new high in May this year, as consumer prices climbed above 11%, marking the highest point in almost 29 years.

More specifically, according to the official data of the Hellenic Statistical Authority (ELSTAT), the annual consumer price index (ie compared to May 2021) stood at 11.3%. The corresponding performance in April was 10.2%.

On a monthly basis (ie compared to April 2022), there was an increase of 0.7%. At the same time, the average index for the 12 months June 2021 – May 2022 increased by 5.3% compared to a decrease of 1.5% in the corresponding period of the period 2020 – 2021.

172% jump in natural gas

The jump in annual inflation is largely due to the energy sector, as gas prices jumped 172.7% compared to last year. Electricity prices, meanwhile, rose 80.2%, while heating oil saw prices soar by 65.1% in 12 months. As a result, the housing sector is 35% more expensive and the transport sector 18.8%.

Towards average inflation close to 9%

The constant rise in goods and services costs has shaken the basic scenario of the Stability Program for average inflation of 5.6% in 2022, bringing to the fore the unfavourable scenario, which raises the speed of the index to 7.6%.

The situation is exacerbated even more in light of the forecast issued by the Organization for Economic Cooperation and Development (OECD) which revised its previous inflation prediction to a rate of 8.8% on average, ie at twice the speed of its previous forecasts.

also read

“Greece is the new PKK, Mitsotakis is the ‘new Zelensky”, Turkish security analyst says