Greece’s Inflation Hits 3.7% in July, Tops Eurozone Average Again

Greece’s inflation rate edged up to 3.7% in July, from 3.6% in June, according to preliminary data released by Eurostat. This marks yet another month in which Greek inflation has surpassed the Eurozone average, underscoring persistent structural weaknesses in the country’s economy that the government has yet to effectively address.

Across the Eurozone, inflation held steady at 2% in July. Core inflation—which excludes volatile items such as food and energy—remained unchanged at 2.4% year-on-year, while monthly core inflation dipped slightly by 0.1%.

Breaking down the data by category, food, alcohol, and tobacco are expected to post the highest annual inflation rate in July, at 3.3%, up from 3.1% in June.

Services followed at 3.1%, though slightly lower than June’s 3.3%. Prices for non-energy industrial goods rose by 0.8%, compared to 0.5% the previous month, while energy prices continued their deflationary trend, falling 2.5%, a slight improvement from June’s 2.6% drop.

Greece has remained consistently above the EU average for inflation since October last year. Analysts point to domestic challenges—particularly in the food sector, housing, and energy costs—as key drivers of this inflationary pressure.

Meanwhile, Greece’s booming tourism industry—surging since last year and maintaining high levels this season—has added upward pressure on prices, especially in the services sector. While this contributes to economic growth, it also fuels inflation, compounding existing structural issues.

In Germany, EU’s largest economy, consumer prices rose 1.8% year-on-year in July, down from 2% in June, according to the Federal Statistical Office.