Eurostat’s inflation figures for both the Eurozone and Greece have set new records causing a veritable shock around the continent.
In particular, inflation in the eurozone was 8.6% in June from 8.1% in May, according to the preliminary data published today by the official statistical authority of the European Union.
The picture in Greece
According to Eurostat data, inflation for Greece stood at 12% in June from 10.5% in May and 9.1% in April.
It is worth noting that the Greek statistical authority ELSTAT is expected to announce the national price index on July 8.
Worse to come
As is traditionally the case, the percentage is expected to be higher than the one recorded by Eurostat, as a harmonized index, which implies that inflation in Greece is becoming more and more intense.
However, Greece had not recorded an inflation rate of 12% since December 1993, and June figures are an almost 29-year high.
It is worth noting that yesterday, in its report on monetary policy, the Bank of Greece revised its forecast for growth down to 3.2% (1.8% in the adverse scenario) and expects inflation for the whole of 2022 to stand at 7.6%.
In terms of what the factors contributing to this new rise in eurozone inflation, energy tops the list with the highest annual rate in June (41.9%, up from 39.1% in May), followed by food, alcohol and tobacco (8.9%, as against 7.5% in May), non-energy industrial goods (4.3%, as against 4.2% in May) and services (3.4%, as against 3.5% in May).
A “Headache” for the ECB
However, the new rise in inflation is causing a “headache” for the European Central Bank, which in July is expected to announce the first increase in interest rates since 2011. According to analysts, this increase will be of the order of 0.25 basis points, while a similar move is expected in September.
This will result (provided there are no surprises) at the end of the third quarter with the key ECB interest rate at 0.5% (from 0% today) and the deposit rate at 0% (from -0.5% today), ending the era of negative interest rates.
Latest News
Vacant Properties in Greece Posing Risk of Forest Fires
Homeowners are calling on municipal authorities to clear away empty properties which pose a serious threat of fire in the summer
New ‘Jobmatch’ App to Link Greek Tourism Businesses with Jobseekers
New digital app ‘Jobmatch’ aims to help Greece’s tourism and hospitality sector fill hundreds of empty posts ahead of the tourism season
HSBC, Goldman Sachs Positive on Greek Economy
Goldman Sachs sees an upgrade of the Greek stock market
Greek Easter 1.5bln-Euro Turnover Satisfies Retailers
This year’s Orthodox Easter coincided with the beginning of the summer tourist season, resulting in a 15% increase in tourist traffic in downtown Athens
President von der Leyen’s Campaign Website Attacked by Bots
The President of the European Commission announced the attack, which comes one month before European Parliament elections and following a series of media reports about Russian-led disinformation campaigns, on her X account
MEPs Rake in ‘Whopping’ €8.7 mln in Side Gigs – Transparency Intl
The report opens a "can of worms" about the potential for foreign governments to influence MEPs and notes that Greece's MEPs rank the 3rd highest for their generation of side income
Greece Reacts Sternly to Turkish Decision to Open UNESCO Site Chora Church as a Muslim Mosque
"The decision of the Turkish authorities to start the operation of the Monastery of Chora as a Muslim Mosque constitutes a provocation to the international community", the Greek Foreign Ministry stated
DW: Greece Prepares for the 2024 Tourist Season Amid Climate Change Challenges
The Greek state has adopted measures to alleviate the impact of climate change
Greco-French Relations on Ice: Exploring the Chill between Mitsotakis and Macron
Macron allegedly sought increased military support for Ukraine, including weaponry and Western troop deployment for training in Western Ukraine, a request declined by Mitsotakis
Greece Secures Stable Tourism Flows at 30 Million Arrivals
However, despite this year’s bookings projected to rise slightly compared to last year, Yiannis Hatzis, President of the Panhellenic Federation of Hoteliers, stresses the importance of strategic planning