Inflation in Greece at 2.7% for January, as Food Costs Were Steady & Narural Gas Was Up

Inflation in Greece climbed to 2.7% in January 2025, up from 2.6% in December, according to data released by the Greek Statistical Authority (ELSTAT).

Notably, food inflation remained nearly stagnant at just 0.1%, while the highest price increases were recorded in passenger air transport (31.6%), natural gas (26.5%), hotels-motels-inns (16.8%), residential rents (9.2%), and holiday packages (8.4%). Additionally, health insurance premiums saw a 7% rise.

On the other hand, the most significant price declines were observed in olive oil (-10.5%), audio and visual equipment (-8.7%), used cars (-5%), solid fuels (-4.2%), and household consumables (-4%).

Key Contributors to Inflation Increase

The 2.7% year-on-year increase in the inflation in Greece (CPI) was primarily driven by price changes in the following categories among others:

• Food and Non-Alcoholic Beverages (+0.1%): Prices increased mainly for beef, pork, fresh fish, dried fruits and nuts, frozen vegetables, sugar-chocolates-sweets-ice cream, coffee-cocoa-tea, and bottled water-soft drinks-fruit juices. These were partially offset by declines in bread and cereals, cold cuts, dairy and eggs, olive oil, fresh fruits, and fresh vegetables.

• Clothing and Footwear (+5.4%): Higher prices in apparel and footwear pushed this category upward.

• Housing (+4.6%): Significant increases were noted in residential rents, home repairs and maintenance, electricity, and natural gas. These were partially counterbalanced by lower heating oil and solid fuel prices.

• Health (+3.5%): The rise stemmed from higher prices for pharmaceutical and medical products, medical-dental and paramedical services, and hospital care.

• Transport (+3.3%): Price hikes were seen in new cars, car parts and accessories, fuel and lubricants, vehicle maintenance and repairs, and passenger air transport tickets. However, used car prices recorded a decrease.

• Communications (+1.2%): Prices rose mainly in telephone services.

• Recreation and Cultural Activities (+1.3%): Increases were observed in information processing equipment, small recreational items-flowers-pets, recreational and cultural services, newspapers-books-stationery, and holiday packages. These were partially offset by declines in audio-visual equipment and durable leisure and cultural goods.

• Education (+2.6%): Higher prices were recorded in tuition fees for preschool, primary, and secondary education.

• Hotels, Cafés, and Restaurants (+5.1%): Prices surged in restaurants, pastry shops, cafés-canteens, and accommodation services.

Areas of Price Decline

• Durable Goods, Household Equipment, and Services (-0.2%): A drop in prices for household consumables was recorded, though it was partially mitigated by rising prices in furniture, decorative items, and household services.