The Bank of Greece (BoG), through its latest “Inflation Monitor” report, highlights the
The Bank of Greece (BoG), through its latest “Inflation Monitor” report, highlights the persistent inflation affecting the Greek economy, with a particular focus on services and core inflation.
According to the analysis, inflation in Greece is expected to reach 2.9% in 2025, primarily driven by the continued rise in service prices. A gradual slowdown to around 2% is projected by the end of 2026.
However, a temporary increase to 2.5% is anticipated in 2027, owing to the implementation of the new European Emissions Trading System (ETS2), which will impact energy prices.
Inflation Trends and Core Dynamics
In April 2025, Greece’s Harmonized Consumer Price Index (HCPI) fell to 2.6% from 3.1% in March, driven by modest goods price increases and a sharp 4.7% drop in energy costs. In contrast, service prices jumped 5.3%, nearly double that of goods, pushing core inflation to 3.8%—above the Eurozone’s 2.7%—and keeping Greece ninth in EU price growth.
Food and Energy Price Dynamics
Processed food products, including alcohol and tobacco, saw a 0.6% price drop, while unprocessed foods surged by 7.2%, surpassing the Eurozone average of 4.9% and recalling past inflation crises. Despite a 4.7% overall decline in energy prices, electricity rose by 4.7% without subsidies, natural gas spiked
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