The Bank of Greece (BoG) has revised its inflation forecast for Greece upward for this year, setting the bar at 3.1% compared to the previous estimate of 2.9%. According to its periodic study released today, high prices will persist in the Greek market under worse conditions than initially expected.
The central bank’s baseline scenario projects it will decline to 2.6% in 2026 and drop further to 2.4% in 2027. If these forecasts prove accurate, Greece will still fail to meet the 2% target set by the European Central Bank. In other words, price increases in Greece will continue at a significant pace, further undermining households’ purchasing power.
At the same time, the Bank of Greece expects inflation in the eurozone to fall from 2.1% this year to 1.7% in 2026 and 1.9% in 2027. This means that inflation in Greece will remain consistently higher than in the eurozone for years to come—highlighting the government’s considerable responsibility.
The Harmonized Index of Consumer Prices (HICP) includes a wide range of goods and services typically consumed by the “average” household.
Although inflation has eased compared to the double-digit levels of 2022, it continues to erode the purchasing power of Greek consumers more severely than the European average.
According to the Bank of Greece, headline HICP inflation eased to 3.1% in August 2025 (down from a peak of 3.7% in July), due to declines across all components. Similarly, core inflation dropped from a high of 4.3% in July to 3.9% in August, reflecting decreases in both services and non-energy industrial goods.
