The Bank of Greece predicts that this year the consumer price index will close on average at 3.8%. [InTime News]
Greece is among the countries in the developed world that are most prone to sustaining high inflation, despite the decline in energy prices, in the context of the US-Iran peace agreement.
This finding emerges in a recent report by BMI, the analytical arm of the Fitch group, and does not come as a surprise to economic analysts in Greece, who have similar concerns. According to BMI analysts, inflation will not return to pre-war levels, that is, to 3% in February, before April of next year.
Excessive demand, in relation to the country’s production capabilities, but also structural problems, distortions and oligopolistic conditions in the market, which allow high profits to be secured, lie behind the index’s persistence at high levels, according to the analyses. In any case, high prices are hurting the most vulnerable and constitute the most difficult problem for the government in view of the elections.
In May, inflation in Greece was 4.9% and in the eurozone 3.2%. The Bank of Greece predicts that this year the consumer price index will close on average at 3.8% (from 2.9% in 2025) and then fall to 2.6% in 2027. The European Commission also saw this year’s inflation at 3.7% in its spring forecasts, easing to 2.4% in 2027.
