Inflation jumped to 10.2%


With double-digit percentages inflation is running, for the first time in 28 years.

According to ELSTAT, the national consumer price index was formed in April at 10.2% from 8.9% in March recording record levels since 1995.

The increases in energy also cause shock: 122.2% over the price of natural gas on a 12-month basis, 65.1% over the prices of oil, 88.8% the increases in electricity.

And in the basic items the prices bring dizziness: 10% more expensive bread, 14.1% more expensive meats 13.2% more dairy and eggs, 22% more expensive oils, 13.8% vegetables and 29% fuels and lubricants.

The inflationary pressures caused by the energy crisis and the war in Ukraine have long been felt in the Greek economy and in the pockets of consumers.

Rising prices for energy, raw materials and transportation also lead to increases in supermarkets and shops. One after another, companies, even those that did not raise prices in 2021, are now doing so, as they want to ensure their continuity and at the same time reduce the pressure on profit margins.

The scenarios for 2022

The message from the domestic and international market is that inflationary pressures will continue throughout 2022, dealing a severe blow to consumer income and putting a huge strain on business operations.

The worst thing is that no one can predict the duration and intensity of the phenomenon. The Ministry of Finance and other agencies and organizations have long revised their estimates for 2022.

In the Revised Stability Program, submitted 10 days ago in Brussels by the Ministry of Finance, the basic estimate is that the average inflation for 2022 will reach 5.6%, as from the summer onwards inflationary pressures are expected to de-escalate.

New support measures

The package of measures announced by the government for the reduction of electricity prices is expected to play an important role in this context.

As the Minister of Finance, Christos Staikouras, said yesterday, with the 3.2 billion euros announced last week for the support of households, of which 1.1 billion euros will come from the budget, the budget margins are running out. with current data.

However, he left open new margins in the future, depending on the implementation of the budget. After all, according to him, the margins for last week’s measures were given by the best of the planned execution of the 2021 budget, the good course of this first four months and the 39 billion euros of cash.

As MR wrote, the Ministry of Finance keeps reserves to be used in the next period if needed. The measures that are currently in the drawer and can be activated if needed are, among other things, a wider housing allowance but also a targeted reduction in VAT on basic products.


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