ECONOMY

Consumer price index at 12.1% in June

Consumer price index at 12.1% in June

Inflation recorded a new jump in June, with price increases now extremely high not only in energy products, but also in very basic foods such as bread, milk, olive oil and meat, as well as s range of services which have a direct link with the cost of fuel, such as air, sea and road transport. 

Although inflation in June ended up not at 13%, as expected, but at 12.1% from 11.3% in May, there are no signs of deceleration in either the energy or food sectors. Even if there are no further extensive price hikes in the summer, new ones are not ruled out from the fall, with great fear of natural gas sufficiency problems.

The formation of inflation at 12.1% constitutes a throwback to the 1993-94 period when inflation for the month of June was formed at 15.8% and 10.3% respectively.

Globally, there has been a slow but steady de-escalation of crop production, though not on the same scale as livestock production, which seems to be much more affected now by the high costs of animal feed. The Food and Agriculture Organization of the United Nations (FAO) showed its dairy price index rose in June by 5.9 points, or 4.1% compared to May, and by 24.9% compared to a year ago. Also, the meat price index increased by 1.7% in June compared to May and by 12.7% compared to June 2021.

The Hellenic Statistical Authority (ELSTAT) data published on Friday for June recorded very large price annual increases in natural gas (117.7%), electricity (70.4%), heating oil (65.1%), and other types of fuel such as gasoline and diesel (45.6%). These hikes have also factored in the state subsidies given for electricity, natural gas and vehicle fuel.

These increases triggered major price hikes in a range of services such as air travel, with air fares increasing by 48.5%, ferry fares by 20.4%, while recent changes to taxi fares resulted in annual growth of 32.9%.

In food and non-alcoholic beverages, the increases were 12.6% on an annual basis and 1.5% on a monthly basis. There were yearly price increases of 24.9% in oil, 15.9% in bread-cereals, 15.5% in dairy-eggs, 14.9% in meat, 11.3% in vegetables, 9.3% in fruit, and 8.6% in coffee.

Hotel charges were up 27.7% from last year, food service rose 4.6%, while cinema and theater tickets are up 13.9%.

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