A surge in energy and transport costs pushed up household expenses across Greece in September, with some of the steepest increases showing up in natural gas, heating oil, diesel and gasoline. Annual inflation rose to 5% from 3.8% in August, according to data released by the Hellenic Statistical Authority (ELSTAT). Consumer prices also increased 2.1% from the previous month.
The figures closely track Eurostat’s earlier flash estimate, which put Greece’s annual inflation rate at 5.1% in September under the European Union’s harmonized measure. The two indexes are calculated differently, but together they point to the same sharp acceleration in price pressures during the month.
A spike in energy costs was at the center of the increase. Natural gas prices were 55.2% higher than a year earlier, while heating oil rose 53.2%. Diesel prices increased 38.8%, gasoline was up 22.5% and electricity prices rose 15%. Those increases fed directly into some of the largest category moves recorded by ELSTAT. Housing costs jumped 14.7% from a year earlier, reflecting higher rents, home repair costs, electricity, natural gas, heating oil and other household energy expenses.
Transport prices climbed 11.3%, driven by diesel, gasoline, vehicle maintenance and other transport related services. Air fares also rose sharply, according to ELSTAT, adding further pressure to the category. Hotels, cafes and restaurants recorded a 6.9% annual increase, while education costs were 2.9% higher. Insurance and financial services rose 3.5%, including increases in health and motor insurance premiums. Food inflation was far more moderate overall, with prices for food and nonalcoholic beverages rising 0.6% from a year earlier.
That headline figure, however, masked sizable differences within the category. Prices increased for bread and bakery products, beef, pork, lamb and goat meat, poultry, preserved fish, cheese, eggs and vegetables. Those gains were partly offset by lower prices for rice, breakfast cereals, fresh or frozen fish, whole milk, olive oil, fruit, chocolate products, prepared meals, fruit juices and coffee.
Health costs rose 1.4%, reflecting higher prices for medical products and outpatient and hospital care, though pharmaceutical prices declined.
Recreation, sports and cultural services rose 1.6%, while personal care and other services increased 1.5%.
The main category to record an annual decline was information and communication, where prices fell 1.9%, largely because of lower costs for audiovisual equipment, mobile phone services and telecommunications packages.
The September reading reinforces the picture from Eurostat’s earlier release, which showed inflation accelerating not only in Greece but across the euro area. Euro area inflation was estimated at 3.8% in September, up from 3.2% in August, with energy again the strongest source of price pressure.
Source: OT.gr
