March inflation in Greece jumps to 8.9%

ATHENS

Greek inflation skyrocketed in March to 8.9% from 7.2% in February, according to Hellenic Statistical Authority data released on Friday.

The sharp jump in prices has left Greek consumers reeling from high prices for almost all goods.

According to the data, prices on every day staples as well as energy have climbed significantly to the point of near-unaffordability for many Greek households.

With bread prices rising 7.6%, inflation stands at 6.4% for meat, 8.4% for eggs, 19.9% for oils and fats, 7.8% for fresh fruit, 13.6% for vegetables, 5.4% for coffee, 79.3% for electricity, 68.3% for natural gas, 58.5% for heating oil, and 29% for fuel and oil, leaving consumers struggling to make ends meet.

Bank of Greece Governor Yannis Stournaras told a general meeting of the bank that inflation is one of the top threats to the health of the Greek economy.

“It appears to be taking on a more permanent character and is having a negative impact on disposable incomes, consumer and investor expenditures, profit margins, returns on assets, real wealth, tourism inflows, and eventually the growth rate. It would also bring monetary policy back to normal and raise the cost of borrowing,” he said.

“The rise in prices is unrealistic,” George Gianiotis told Anadolu Agency. Ganiotis, a private sector employee, said that prices have gotten so high that it is very difficult for people to get necessities, and electricity is so expensive that people have to pay for it in installments.

Another consumer at a retail supermarket chain in one of Athens’ affluent suburbs complained how almost everything doubled in price.

“I don’t know where this is going … Yes, it’s very hard for us to be able to buy the necessary items for our house and not spend a fortune, especially with two children,” said Eleni, who declined to give her last name. “This is crazy.”

Risk and uncertainty

Inflation will have a negative impact on households’ real disposable income as it will drag down private consumption expenditures, the Bank of Greece said on Thursday, adding that whether it continues mainly depends on the war in Ukraine and subsequent economic developments.

In a speech on Friday, main opposition SYRIZA leader Alexis Tsipras, a former prime minister, criticized the government for lacking an energy strategy, as well as its handling of high prices.

"In a period of crisis the top priority should be the common good and reducing the huge bills consumers have to pay," he said, adding that if the price hikes in food, fuel, and other goods continue much longer, there are concerns this could trigger a social crisis.