Greek households are experiencing yet another round of price hikes, with inflation remaining one of the most pressing economic issues in the country. According to Eurostat’s Harmonized Index of Consumer Prices (HICP), inflation in Greece climbed to 3.7% in July 2025, marking the third consecutive monthly increase and significantly surpassing the EU average.
Greece Outpaces Southern Europe
Inflation in Greece rose from 3.3% in May to 3.6% in June, reaching 3.7% in July. By comparison, France recorded the lowest rate among southern European countries, just below 1%. Italy stood at 1.7%, Portugal at 2.5%, and Spain at 2.7%, according to Bloomberg data. Analysts expect eurozone inflation overall to edge up only slightly, from 2% in July to 2.1% in August.
Housing and Energy Drive Greek Inflation
The steepest increases in Greece came from housing costs, with rents up 11.3% year-on-year. Electricity prices rose 18.9%, natural gas 4.4%, and health insurance premiums 7%. Clothing and footwear saw price hikes of 8.4%, while vacation packages cost 6.4% more than a year earlier.
Pressure on the Government
Prime Minister Kyriakos Mitsotakis emphasized Greece’s progress in renewable energy, noting a 29% drop in wholesale electricity prices compared with last summer. He insisted these savings must reach retail consumers soon, warning that the government will intervene if they do not.
Meanwhile, with the Thessaloniki International Fair approaching, the government is preparing a €1.5 billion relief package aimed at the middle class. However, critics argue such measures will be undermined by unchecked profiteering and lack of stronger market regulation.
Wholesale Prices Signal More Hikes
Wholesale price data suggest further inflationary pressure ahead. Prices of domestically produced industrial goods rose 0.5% in July compared with a year earlier, including a 2.8% increase in food prices. Analysts warn the coming autumn may bring additional hikes in essentials such as fruits, fish, and meat.
Source: In
