A further small de-escalation was recorded by inflation in Hellas in August, according to the estimates announced yesterday by Eurostat for harmonized index of consumer prices. However, it remains at a double-digit rate and even above its inflation rate Eurozonewhile the forecasts for the next period are not optimistic, as the prices of natural gas and electricity break one record after another.
So, according to Eurostat estimates, the harmonized index of consumer prices stood at 11.1% in August from 11.3% in July. In other words, prices compared to last year continued to increase significantly, but at a slightly lower rate. Also, Eurostat estimates that compared to July 2022 consumer prices fell in August 2022 by 0.3%.
This, of course, as mentioned above, is in no way a reason for optimism and complacency. Levels of upward price change remain at the height of the 1990s, while the fact that inflation in Greece is still among the highest in the EU. and the Eurozone indicates the structural problems in the economy and mainly its high dependence on energy, primary and secondary materials from imports.
The formation of the harmonized index of consumer prices at 11.1% means that Greece has the seventh highest inflation in the Eurozone.
Also, this remains at higher levels than in the Eurozone as a whole, where it was formed in August – according to Eurostat estimates – at 9.1% from 8.9% in July.
Greece has the seventh highest inflation in the Eurozone.
The slight de-escalation is probably related to the small reduction in fuel prices, as well as to the abolition of the famous adjustment clause in electricity tariffs. However, Greece is still included among the EU countries. with very high energy inflation. In August it was 49.6%, the third highest among 10 countries for which data is available.
Even so, and if there is a small de-escalation of the prices of energy products – something, however, which is currently not likely in the foreseeable future – the prices of other goods will continue to be high because they have already been produced with high energy costs.
It is no coincidence that data on the harmonized index of consumer prices for the Eurozone also show a lower rate of increase in energy prices – 38.3% in August compared to 39.6% in July – but a higher rate of increase in food prices – 10, 6% in August compared to 9.8% in July. Also, the price increase in non-energy industrial products was greater in August, 5% against 4.5% in July, but also in services, 3.8% in August against 3.7% in July.
The data for the National Consumer Price Index for August will be announced by the Hellenic Statistical Authority (ELSTAT) on Friday, September 9.