Despite slowing inflation rates, Greek households continue to face an expensive daily reality, prompting widespread cuts to family budgets and squeezing consumer spending.
An analysis by the Piraeus Chamber of Commerce and Industry (PCCI) finds that nearly 80% of Greeks have altered their household budgets as high prices persist across food, housing, services and energy. Businesses, meanwhile, report lower sales volumes and ongoing pressure from operating costs, particularly rent and electricity.
The Chamber describes a key contradiction in the Greek economy: inflation rates are falling, but the cost of living is not. While headline figures suggest improvement, everyday expenses remain elevated, leaving households and businesses stuck with persistently high living costs.
Inflation Eases, Costs Accumulate
According to Eurostat, Greece’s inflation rate stood at 2.9% in December 2025, unchanged from previous estimates. By comparison, inflation in the eurozone fell to 1.9%, while the EU average eased to 2.3%, confirming a broader slowdown in price growth across Europe.
Although inflation in Greece has declined sharply from previous years and now sits closer to the eurozone average, accumulated price increases from 2021 to 2025 continue to weigh heavily on households. Annual increases remain significant, with prices up 7% for food and beverages, 7% for services, 8% for rents and 6% for energy.
Eurostat data show that services were the main driver of inflation in the eurozone in December, followed by food, alcohol and tobacco. Energy prices had a negative contribution, reflecting lower costs at the European level.
Impact on Consumers and Businesses
PCCI notes that the pressure on households is directly affecting the market. Reduced purchasing power has led to lower consumption, while businesses face rising costs and weaker demand. According to the Chamber, around 80% of final prices are driven by production costs and the price of imported goods, limiting the effectiveness of domestic price controls.
The Chamber says it is not only monitoring inflation but actively analyzing developments, advising businesses and submitting policy proposals aimed at limiting the impact of high prices on the market.
Economic Outlook and Policy Response
The Bank of Greece forecasts further stabilization and a gradual decline in inflation, which is expected to average about 2.1% between 2025 and 2027. The European Commission projects Greek economic growth of around 2.2% in 2026, alongside inflation gradually easing to between 2.3% and 2.8% in the coming years.
Government policy remains focused on fiscal stability and maintaining a primary surplus, with the goal of limiting inflationary pressures caused by demand outpacing supply.
Measures already in place include tax reductions, a zero income tax for new workers, the abolition of the ENFIA property tax in small villages, enhanced market oversight through consumer reporting apps, price alerts, producer-run open-air markets and stricter controls on misleading discounts. Additional income support measures worth about €2 billion for households are planned for 2026 and 2027.
Calls for Wages and VAT Reform
PCCI President Vassilis Korkidis said addressing Greece’s “five-year cost-of-living crisis” requires immediate wage increases in both the public and private sectors, targeted price regulation, stronger market controls, tax relief and income support for vulnerable groups and the middle class.
In the medium term, he called for reforms to boost productivity and competition. He also proposed restructuring Greece’s value-added tax system into two rates, reorganizing basic goods while maintaining annual VAT revenues, estimated at €29 billion.
Korkidis also pointed to the role of the newly established National Market Supervision Authority, expressing hope that stronger enforcement, transparency and competition will help curb entrenched high prices, which is a problem he described as the most persistent challenge facing Greek households today.
