Gas rate drop may take a while to trickle down to retail prices
Τhe significant reduction in natural gas rates recently is generating hopes for a decline in inflation, as gas’ contribution to price hikes in Greece exceeds 50%.
At the same time, the overall de-escalation of energy prices may prevent any secondary effects on the prices of other products, services and salaries.
However, the eventual slowdown of inflation may also derive from a significant fall in demand, causing a further slowdown in growth, if not a recession.
Even if the energy rate fall lasts, the de-escalation of inflation is not expected to be quick, as a stock of products have been produced at a high cost while some production costs keep growing.
