Persistent inflation in Greece is driven by rising costs in the
Persistent inflation in Greece is driven by rising costs in the country’s service sector, which represents 80% of the harmonized index of consumer prices (HICP) for the first nine months of 2025, Alpha Bank notes.
In its weekly analysis, the Greek systemic bank stresses that inflation in Greece stands at an average of 3% compared to the 2.1% in the Eurozone over the same period, remaining at the same levels as in 2024.
Structural inflation, which does not measure fluctuating energy costs and food prices, settled at 3.9% compared to 2.4% in the Eurozone. This notable discrepancy reflects the conditions of excess demand against conditions of excess supply.
The main factors driving services inflation—and keeping inflationary pressures elevated—include:
- Strong demand, particularly external demand linked to tourism.
- Broad wage increases have had a stronger impact on service prices since the sector is more labor-intensive than others.
- Higher indirect taxes on food service and accommodation were introduced in the middle of last year.
There is also a technical factor: the increased weighting of services in Greece’s Harmonized Index of Consumer Prices (HICP). In 2025, services account for nearly 49% of Greece’s HICP—the third-highest share in the eurozone. This means that the rise
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