The surge in the cost of living in Greece is affected by “external factors and is temporary,” Greek Premier Kyriakos Mitsotakis said on Monday, noting that there is indeed a global price crisis.
Most economists consider this to be a temporary phenomenon, amid rising demand following the lifting of lockdowns worldwide, with the European Central Bank (ECB) estimating that there will be a de-escalation of inflationary pressures in the first quarter of 2022, he told lawmakers during a debate on rising inflation and energy prices, triggered by main opposition leader Alexis Tsipras.
He added, however, that a different view links the rise in prices to the looser monetary policy followed by the ECB, which could give it a more permanent characteristic.
Inflation in Greece reached a 10-year high in October, amounting to 3.4% year-on-year, according to data from the Hellenic Statistical Authority (ELSTAT), mainly due to doubling of natural gas rates and hikes in fuel and food prices – the latter is expected to pile the pressure on vulnerable households that need to spend most of their budget on food purchases.
Eurozone inflation surged to more than twice the ECB’s target in October, with more than half of the jump due to a spike in energy prices.