Food, housing and transport constitute the main drivers of inflation, with price increases in certain categories running at rates up to four times higher compared to last year, setting household budgets on fire.
Inflation: Which categories are causing the price explosion
Analysis of data from Greece’s statistical service for inflation in April, which shot up to 5.4% from 3.9% in March, reveals that the price explosion stems from the following categories:
- Food and non-alcoholic beverages: On average, price increases in April on an annual basis were 4.4% when last year during the same period the index recorded an increase of 2%. The explosive acceleration of price hikes in essential goods came from double-digit increases in basic foods such as beef with price increases of 19.2%, lamb and goat with 13.3%, margarine and other vegetable fats with 11.6%. Sharp increases are also recorded in other items such as fruits with 7.5%, coffee with 7.9%, chocolates with 7% and vegetables with 7%. Within one month, food became more expensive due to price increases in pasta by 4%, lamb and goat by 5.7%, pork by 2.5% and fruits by 0.7%.
- Housing: Significant deterioration is recorded in housing costs, as the burden on households increased within one year by 13.8%, compared to an increase of 3.4% in the corresponding period last year. In other words, within one year the pressure on households almost quadrupled. Energy products play a decisive role in rising housing costs. Heating oil set expenses on fire as it increased by 53.2%, while energy prices also moved upward, with electricity increasing by 14% and natural gas by 19.3% on an annual basis. Indicative of the intensity of price hikes is the fact that just within one month the price of natural gas increased by almost 40%. At the same time, residential rents continue their upward trajectory, increasing by 7.6% while home maintenance costs have also become more expensive, as expenses for repairs and maintenance work increased by 7.3% within one year, affecting even more households trying to meet basic housing needs.
- Transport: Strong inflationary pressures are also recorded in transport, with fuel increases causing chain reactions in both daily commuting and air travel. According to statistical data, the price index in the transport group increased by 10% on an annual basis, when in the corresponding period last year it recorded a decrease of 0.8%. This change reflects the significant burden now faced by households and professionals from increased energy costs. Particularly large are the increases in liquid fuels. Diesel increased by 32.4%, gasoline by 17.1%, while prices in other fuel categories increased by 42.4%, making car transportation costs unbearable. At the same time, an intense wave of price increases is recorded in airline tickets. Prices increased by 18.6% compared to a year ago, while just compared to March the increase reached 15.6%, a development directly linked to rising fuel costs.
