Inflation in Greece skyrocketed to 11.3% in May

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Greek inflation soared to 11.3% in May from 10.2% in April and 0.1% in May 2021, Hellenic Statistical Authority said on Thursday.

The statistics service attributed this development in the consumer price index to price increases in all products and services, led by energy.

The price of natural gas soared 172.7%, electricity was up 80.2%, heating oil jumped 65.1% and fossil fuels rose 5.4%, leading to a 36.6% rise in fuel-lubricants, a 22.8% rise in air travel and a 17.7% increase in ship travel.

Products included in the so-called ‘household basket’ recorded big price increases.

More specifically, oil/fat rose 23.2%, dairy-eggs rose 14.1%, meat 13.8%, bread-cereals 13.4%, vegetables 13%, fresh fruit 10.8%, coffee-cocoa-tea 6.3%, mineral water-beverage-fruit juice 5.6%, sugar-chocolate-ice cream 4.7%, fish 4.1% and alcohol 2.1%.

Price increases were also recorded in hotels (22.2%), cinemas-theatres (13.9%), used cars (11.5%), home appliances (8.8%), new cars (8.7%), holidays (8.4%), clothing-footwear (5.6%), car parts (4.8%), furniture (4.5%), restaurants (4.1%), durable goods (3.5%), education (1.4%), dental services (1.3%), house rents (0.9%), hospitals (0.4%).

The statistics service attributed the 11.2% increase in the consumer price index to index increases in foods/beverages 12.1%, alcohol/tobacco 0.9%, clothing/footwear 5.6%, housing 35%, durable goods 5.1%, health (0.5%), transport (18.8%), entertainment (1.3%), education (0.9%) and hospitality (5.1%). Index declines were recorded in the communication (-2.5%).

Greece’s harmonised inflation rate rose to 10.5% in May from 9.1% in April and -1.2% in May last year. In the May-April period 2022, the harmonised inflation rate rose 0.9%.

Elsewhere, the Greek government on Thursday unveiled a package of measures aimed to ensure energy saving in the public sector through reducing energy consumption by 10% in 2022 and by 30% by 2030.

Implementation of the measures will lead to cost savings worth several hundred million of euros, given that energy spending by the public sector is expected to reach 1.165 billion euros this year (before implementation of measures).

Presenting the package of measures, Environment and Energy Minister Kostas Skrekas said they focused on three axes: implementation of a digital platform to monitor consumption, introducing incentives to achieve energy saving targets and embarking on an immediate programme of equipment maintenance, reducing consumption in road lights and water/drainage systems.

At the same time, the government is launching the “Electra” programme for the energy upgrading of public sector buildings, a project budgeted at 640 million euros.

The programme aims to reduce energy consumption by 30%. Energy consumption for the 212,000 installations of general government was 596 million euros in 2020 (with a consumption of 4,450 GWh).

In 2021, spending rose to 956 million euros (with consumption at 5,345 GWh). For this year, spending is projected to reach 1.165 billion euros with consumption remaining at last year’s levels.

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