Greece’s inflation has topped 3% for the first time since August 2024, the Hellenic Statistics Authority (ELSTAT) announced Friday. Specifically, at the end of June, the annual inflation rate reached 3.1%, rising for a third consecutive month.
This comes as no surprise, as the figure is in line with initial estimates published by Eurostat last week as part of its Harmonized Index of Consumer Prices.
Behind the continuing inflationary pressure lie rising energy prices that affect prices in goods and services; rising demand due to a large extent to another record peak tourist season; and the effects of climate change that hurt supply of fresh fruit and vegetables.
July price gains are being led by food, rents and electricity bills. The figures also reveal why summer holidays are beyond the financial capability of an increasing number of people, with significant price rises in holiday packages as well as on individual accommodations, restaurants and transport.
Among the five products with the steepest price gains on an annual basis are fruit (19.3%) and coffee (16.8%). Other products that exceeded the average inflation (2.8%) in fruit and non-alcoholic drinks are fresh fish (7%), sugar, ice cream and other confectioneries (6.4%), meat (6.2%) and bakery products (5.4%). There were also big month-to-month price rises in olive oil (9.5%) and coffee (5.3%). Housing prices rose 6.6% year-on-year, with electricity bills (18.9%), rents (11.3%) and natural gas (4.4%) being the main culprits. Also, on a monthly basis (June to July), electricity bills rose 5.7% and natural gas 2.7%.
There have been significant hikes in tourism-related services: Holiday packages were up 6.4% year-on-year, plane tickets 6.2%, catering 6% and accommodation 5.7%. Month-on-month, airline tickets were up 11.7% and accommodation 2.7%. According to Eurostat, Greece had the third highest services inflation (5.2%) among the 20 eurozone countries. Health insurance contracts rose 7%, hair and other beauty salon prices were up 6.1%, and entertainment and cultural events 5.6%.
Clothing and footwear prices, which had lagged most categories in previous years, finally caught up, rising 8.4%.