Inflation: Turns Greece 28 years back – Financial Postman
A year back, in the distant 1994, double-digit inflation “turns” Greece, which pulls uphill to a level of more than 10%. After 28 years, the consumer in Greece feels the weight of accuracy not only in electricity bills but also in basic food items. With the new, recent intervention package of 3.2 billion. euro in energy inflation is projected to be curbed in 2022 around 5%.
They host headlines and articles from the years when inflation skyrocketed in Greece (in the crises of the ’70s,’ 80s, ’90s), traveling through time through the historical archive of the Financial Post, NEON and Vima.
Today, ELSTAT data for April are expected, which leads the index to more than 10%. According to official Eurostat data released last week, the harmonized index of consumer prices climbed to 9.4% compared to -1.1% in the corresponding month of 2021. In March 2022 the corresponding index was set at 8 %, while the consumer price index of ELSTAT was set at 8.9%.
Record inflation
The sharp rise in energy prices “burns” incomes and economic climate and has shaped inflation to record levels. After the start of the Russian war in Ukraine, the estimates of the Ministry of Finance were revised for this year, raising the average inflation to the level of 5.6% – from 1% which was the initial forecast. The analyzes show scenarios for an increase of even 11%, while a “black record” hits the consumer and economic climate, with the fall being recorded in the market and in the indices. Inflation started to show its teeth in January when it jumped to 6.2%, at a higher level since 1997, recording a historical record since Greece adopted the euro. In December 2021 it rose to 5.1% from 3.4% in October and 4.8% in November.
The IOBE data show that 49% of Greek households predicted a slight or significant demonstration of their financial situation, while almost half continue to predict that they will make less or very small expenses. In the food retail they are preparing for a new round of price increases, as according to price lists from the suppliers more than 400 product codes are increased from 10% to 50%. they increase. Indicative are the data on the salaries of employees, who are called with already reduced salaries – and high contributions – taxes – to pay an extra unbearable cost.
According to the Stability Program, the Ministry of Finance forecasts that inflation will rise to 5.6% this year (from a forecast of 0.8% in the budget), a year in which there will be a peak, as for the times it predicts that the price index consumer. by 1.6%, while the years 2024 and 2025 by 1.7%.