Cost of Living: Why Greece’s 3% Inflation Is Raising Alarm

Worrying signs are emerging from Greece’s inflation data, pointing to continued cost-of-living pressure across the country. Harmonized inflation (HICP) stood at 3% for the whole of 2024, remaining higher than both the EU average (2.6%) and the eurozone average (2.4%). A similar picture has emerged in the first quarter of 2025, with Greece again above average, according to Eurostat figures published yesterday. Notably, prices rose by 1.8% in March compared to February—the highest monthly increase among eurozone countries.

In March, Greece recorded an inflation rate of 3.1%, while the eurozone average stood at 2.2%. A closer look at the individual categories reveals the following trends: services remain the sector with the highest annual price increase, despite a slight slowdown compared to February. The relevant index came in at 5.2% (vs. 3.4% in the eurozone), down slightly from 5.3% (vs. 3.7% in the eurozone); energy prices rose by 0.2% year-on-year in March, compared to 0.4% in February; non-energy industrial goods increased by 0.7% in March, down from 1.4% the previous month.

Core inflation—which excludes volatile food and energy prices—is estimated at 3.9% in March, down from 4.2% in February. This points to widespread price pressures across the economy. In the eurozone, core