Greek consumer price inflation, among the highest in the eurozone, is seen accelerating in June to a new 10-year high, pushed up by rising energy prices, economists said yesterday. June inflation is seen at an annual 5.2 percent from 4.9 percent a month earlier, according to the average of four economists surveyed by Reuters. It will be the highest reading since September 1998. “Energy price inflation is increasingly feeding through to

other products and services,” said economist Nicholas Magginas at National Bank of Greece. “This is increasing the persistence of inflationary pressures.” Upward price pressures in Greece’s economy, which makes up about 2.5 percent of the eurozone, are also evident in core inflation which strips out the volatile energy and food price component. In May, core CPI jumped to an annual 4.2 percent from 3.7 percent in April. (Reuters)

ThyssenKrupp Marine Systems, the owner of Hellenic Shipyards (HSY), said yesterday it may seek legal recourse if it incurs losses from a European Commission decision asking Greece to recover illegal state aid to HSY. On Wednesday, the EU executive said Greece must recover more than 230 million euros ($363 million) in state aid it illegally gave to Hellenic Shipyards. The money was transferred between 1996 and 2002 when Greece implemented 16 aid measures to the shipyard, which has built frigates, gunboats, fast patrol missile boats and submarines. Hellenic, which competes with Neorion Shipyards, has been wholly owned by Germany’s ThyssenKrupp Marine Systems since 2005. “ThyssenKrupp Marine Systems, the holding company of the shipyard business, supported the investigations of the EU Commission and contributed to clarifying matters,” ThyssenKrupp said in a statement. It said the EU Commission’s findings related to state aid granted by the Greek government to Hellenic Shipyards Skaramangas before and during the privatization in 1997-2002. (Reuters)

Turkish consumer prices posted a surprise fall in June amid a sharp decline in food prices, official figures showed yesterday, but the data was not seen changing expectations of further rate hikes. The consumer price index fell 0.36 percent month-on-month in June, compared with a Reuters poll forecast of a 0.40 percent rise, for a year-on-year increase of 10.61 percent, the Turkish Statistics Institute said. The producer price index rose 0.32 percent on the month, lower than a predicted 1.00 percent rise, for an annual increase of 17.03 percent. (Reuters)

Bulgaria’s dominant state gas company Bulgargaz has signed a strategic partnership agreement with France’s Gaz de France, the Bulgarian company said yesterday. “The memorandum is about a strategic partnership to develop the market and ensure security of natural gas supplies,” Bulgargaz said in a statement. It did not give other details. A Bulgargaz spokeswoman said the two companies planned to launch at least several joint projects to diversify gas supplies but it was too early to specify them. The Bulgarian company said last year it was in talks with west European energy companies to explore possible partnerships. (Reuters)