Despite easing energy and food prices, Alpha Bank analysis shows that strong demand, booming tourism and rising wages are keeping inflation in Greece well above the eurozone average

Across the European Union, Cyprus posted the lowest inflation at just 0.1%, while France recorded 0.7%, Italy 1.2%, and Finland 1.8%.

Looking ahead, inflation is expected to fall sharply to 2.1% in 2026, remain largely unchanged at 2.2% in 2027, and then experience a one-off increase to 2.5% in 2028.

Food inflation remained a major driver, accelerating to 2.7% and outpacing the overall rate.

The increase was driven largely by the services sector, where prices rose at an annual rate of 4.7%, compared with 2.8% a month earlier.

The government’s 2026 draft budget, delivered to Parliament on Thursday, outlines tax relief for families, young people, and the middle class, alongside strong growth forecasts and expanding public and private investment

Greece recorded one of the lowest inflation rates in the EU—1.6%, down from 1.8% the previous month.

Fresh data show Greece’s inflation rate easing to 1.6% in October, driven by lower increases in energy and services, though average inflation for 2025 remains above the eurozone.

Food, rent, and hospitality costs pushed prices higher in Greece in October, while olive oil prices dropped sharply, according to ELSTAT’s latest inflation data

In its weekly analysis, the Greek bank stresses that inflation in Greece stands at an average of 3% compared to the 2.1% in the Eurozone.

Greece’s debt ratio is expected to fall steadily, from 143.4% of GDP this year to 135.9% in 2026 and 129.4% in 2027.

In supermarkets, IELKA measured inflation at just +1.6% in August, with price cuts in items such as detergents and paper goods but increases in fresh meat.

Inflation in Greece was the third-lowest rate in September, behind only Cyprus and France. Estonia posted the highest rate at 5.2%.

Inflation is projected to decline to 2.6% in 2026 and drop further to 2.4% in 2027, according to the central bank’s baseline scenario projections.

Fruit prices climbed by 11.6%, chocolates surged by 23%, and meat rose 7.5%, while coffee became 18% more expensive.

According to the report, inflation based on the Harmonized Index of Consumer Prices is expected to continue slowing during the projection period.

The European Central Bank left its key interest rate at 2% and is expected to maintain that stance next month before reopening talks on possible cuts in the autumn.

The ministry remains on alert in an effort to contain food inflation, having managed to stabilize prices in some categories earlier this year.

Greek households face mounting price pressures as inflation rises faster than in other southern EU states, hitting housing, food, and energy costs

Inflation in Greece accelerated in July, driven by surging rents, higher energy bills, and rising prices in clothing, food, and hospitality, despite a sharp drop in olive oil prices