Below the 10% level, for the first time since April 2022, a harmonized consumer price index in Greece in October 2022, as he estimates Eurostat dropped to 9.8%. This development is directly related to cut prices in energy products, natural gas, electricity and liquid fuels, with subsidies play a key role in the first two. In addition, Greece is one of three eurozone countries (the other two being Estonia and Malta) whose harmonized consumer price index also fell by 1% on a monthly basis.

Although of course its de-escalation inflation it evokes restrained optimism in the household, but also in the financial apparatus of the government, in no case allows complacency and triumph. Firstly, because inflation is still at a very high level, secondly, because a delayed increase in the final prices of goods and services is expected, thirdly, and most importantly, the volatile geopolitical situation can at any moment provoke a new wave of precision. . A typical example is yesterday’s rise in prices for wheat and corn on international commodity exchanges after Russia’s decision to withdraw from an agreement that allowed Ukrainian grain exports through the Black Sea. Even prices for palm oil, a key ingredient in the food industry, have risen in Malaysia due to fears of a new restriction on exports of sunflower oil from Ukraine. A new increase in grain prices, and especially its duration, will cause a new wave of price increases for flour and, accordingly, for a number of food products, as well as for animal feed, which will cause an increase in prices for dairy products and meat.

The current geopolitical situation can provoke a new wave of precision at any moment.

With the harmonized consumer price index at 9.8% in October, the double-digit inflation streak that began in May was interrupted when it surged to 10.5% from 9.1% in April and continued to 11.6% in June. 11.3% in July, 11.2% in August and 12.1% in September. It is also worth noting that inflation in Greece at 9.8% is now below the level of the eurozone, which set a new historical record in October, amounting to 10.7%. In fact, Greece ranks 12th in terms of inflation in the euro area, at a level lower than inflation in countries such as Italy and Germany, where the harmonized consumer price index was 12.8% and 11.6% respectively. The highest inflation was recorded in Estonia (22.4%) and the lowest in France (7.1%).

Energy inflation in Greece was 20.8% in October 2022, the third-lowest of the 10 eurozone countries for which data is available, while it was twice as high in the eurozone at 41.9%, according to Eurostat. It is worth noting that energy inflation in Greece for the first time exceeded 20% in October last year, when it reached 25.4%, and has followed a steady upward trend since then, reaching 61% in May 2022.

Food inflation in the Eurozone was 13.1% in October from 11.8% in September, non-energy manufactured goods – 6% from 5.5% in September and services – 4.4% from 4.3% in September 2022 (from .b. for individual price changes in each euro area member). they say no data yet).

Increase in retail turnover due to price growth

Retail trade turnover growth in August 2022 was noted by 14.1% compared to the previous year, which is more due to rising prices and to a lesser extent to increased demand. This is due to the fact that at the same time the volume of sales increased much less, by 4.4%, and in certain categories of retail trade there was even a decrease in sales volume. A prime example now is the apparel and footwear retail sector, which is seeing very little growth in turnover and declining sales as consumers choose to cut spending on these purchases to cope with much higher spending. for food and energy.

In particular, according to data released yesterday by the Greek Statistical Office (ELSTAT), in certain categories of retail trade, turnover increased year-on-year as follows:

• Filling stations: 23.4%.
• Specialized grocery stores: 20.8%.
• Out-of-store sales (mainly online sales): 16.7%.
• Pharmacies – cosmetics: 14.9%.
• Furniture – Electrical products – Household appliances: 14.1%.
• Supermarket: 13.3%.
• Books – stationery – other items: 12.3%.
• Department stores: 4.1%.
• Clothes-shoes: 2.7%.

The sales figures show what is really going on in retail during an inflationary crisis. In supermarkets, sales increased by only 1.1% year on year, at gas stations – by 1.7%, while in two cases there was a decrease in sales: in the clothing and footwear sector by 0.5% and in department stores by 0. one%. .