BoG: Greek Households Pessimistic Over Course of Inflation

Greek households appear more pessimistic over the course of inflation in the coming 12-month period, compared with households in the rest of the Eurozone.

The average expectations for inflation in Greece over the next 12 months remained stable at 10% in February 2024, while falling slightly in the Eurozone at 3.1%.

The sentiments were found in an “Inflation Monitor” posted by the Bank of Greece (BoG) on Monday.

The latter noted that annual harmonized index of consumer prices (HICP) headline inflation in Greece increased to 3.4% in March 2024, up from 3.1% in February.

Higher annual rates were posted by non-energy industrial goods and services. Unprocessed food inflation in Greece remains significantly higher than in the euro area. Core inflation also increased to 3.4% in March 2024 from 3.0% in February due to higher annual rates in both its components.

The Annual HICP headline inflation in the euro area declined slightly to 2.4% in March 2024 from 2.6% in February. This development reflects easing inflation for the food components and non-energy industrial goods. Core inflation (HICP excluding energy and food) also declined to 2.9% in March 2024 from 3.1% in February.