Greek inflation slowed to 2.8% in May 2023 compared from 3.0% in April 2023, 4.6% in March 2023, and 11.3% in May 2022. This is according to a statement by the Hellenic Statistical Authority.
The drop between April and May of 2023 reflects a rapid fall in energy prices. Namely, prices fell in natural gas (49.6%), electricity (24.1%), heating oil (20.7%), other fuels (16.8%) and telephone services (2.2%).
Rise in Food Prices
Energy doesn’t tell the whole story, however. Prices of food and food items grew 11.6% in the month alone,
The leaders in this category were bread/cereals (11.1%), meat (11.9%), fish (5.2%), dairy/eggs (18%), oil/fat (15.8%), fruit (2.6%), vegetables (9.7%), sugar/chocolate/ice cream (10.3%), coffee/cocoa/tea (13.2%), mineral water/juices (12.9%) and alcoholic drinks (8.3%).
For access to the full report on Greece’s inflation by category, find the data here.
Greek Economic Growth
The OECD (Organization for Economic Cooperation and Development) projects that Greece’s economic growth will stay strong, with real GDP growth projected at 2.2% in 2023 and 1.9% in 2024.
The OECD also expects fixed capital investments in Greece to boost by 8.9%, thanks to the impact of the European Recovery and Resilience Fund (RRF).
Unemployment in Greece is also scheduled to decline from 12.4% in 2022 to 11.2% in 2023 and then to 10.4% in 2024.
How Does Greece’s Inflation Compare to the EU Average?
The EU’s average inflation was higher than Greece’s in May. For example, Eurostat’s estimates for May show that Greece’s EU-harmonized consumer price index (HICP) was 4.1% compared to a mean rate of 6.1% in the euro area.
The HICP is a measure of inflation in the Eurozone and the European Union. It measures price inflation based on the spending habits of consumers in individual EU countries.
In general, Europe’s inflation rates show encouraging movement. May’s eurozone inflation rate was the lowest of the last 12 months, down from 7.0% in April.
