Inflation in Greece accelerated to 5.0% in September, compared to 3.8% in August, according to data from the Greek Statistical Office. The harmonized indicator used for comparison between countries in the European Union is around 5.1% for the month, according to European statistics.
The strongest pressure on households comes from energy. In one year, electricity has increased in price by 15%, natural gas - by around 56%, and heating oil - by approximately 54%. The average price of petrol is now over €2.20 per litre on the mainland and over €2.50 on the islands.
Fuels remain the main pressure
The fuel price hike is being passed on to transport, heating and commodity prices. The government has increased the direct subsidy for diesel to 15 cents per litre, while the total reduction with the refinery rebate reaches 20 cents. New reduced prices for heating fuel are also to be announced.
The government explains the measures by the increase in international oil prices and the need to limit household spending ahead of the winter season.
Food prices rise despite restrictions
Food prices also continue to rise, although more moderately than energy. The largest increase in September was recorded for meat, dairy products, eggs and bread. Restrictions on trade mark-ups remain in force, and a reduced VAT rate of 13% is applied to certain foods. The effect on final prices, however, is limited.
The opposition is pushing for a temporary reduction or elimination of excise duties on fuels. The government rejects the measure as a permanent solution and says support should be targeted at the most affected households and on heating costs.