In the foreground are the price increases affecting citizens in Greece, with inflation continuing its upward trend, as recent Eurostat data showed. Apart from analysts who believe that there will be further increases, there is also the daily experience of consumers who find it difficult to adjust to an ever-increasing cost of living. It is very important to point out that punctuality concerns goods that are absolutely essential for the daily survival of every family, and is combined with very expensive energy and housing. By all indications, households have a difficult autumn ahead of them, with September and October bills traditionally inflated. Added to the fixed costs of housing, food, fuel and energy are the extra expenses that the start of the school or academic year brings for families with children.
The new rise in inflation in August, the further deterioration in economic sentiment and the further slide in consumer confidence heighten concerns about what lies ahead. It is worth noting that, given the very high appreciation last year, inflation on an annual basis will be nominally lower. This, of course, does not mean that prices will return to pre-crisis levels. On the contrary, they will continue to rise in the coming months, as many analysts believe.
The revaluations
In fact, accuracy does not only concern food but more sectors, although this is the category that hurts consumers« pockets the most. This particular category, therefore, »went up« by 2.2% in August, up from 1.2% in July. At the general price index level, an acceleration was recorded at a rate of 3.2%, up from 3% in July in Greece. For the same period in the Eurozone, a deceleration was recorded at 2.2%, from 2.6%. In fact, Greece is 1 point above the Eurozone average, when the level of purchasing power of citizens in Greece is now comparable to that in Bulgaria.
As regards the category calculated by Eurostat -food, alcohol and tobacco-, in Greece we had again an acceleration with a rate of 2%, from 1.4%, while especially for food, a new increase in the growth rate was recorded at 2.3%, from 1.5%.
Inverse trends were recorded in the categories of industrial goods and services. Non-energy industrial goods rose at a rate of 1.4%, up from 0.9% while prices in the services sector slowed to 4.7%, down from 5%. This development also marginally dragged down the structural inflation index, which ran at a pace of 3.7%, down from 3.8%. As for the energy sector, there was an acceleration of almost 1 percentage point, as the rate moved from 1.4% to 2.3%.
A new increase in coffee prices is coming
The increase in international prices, the reintroduction of VAT at 24% and the alarming increases in electricity bills make up the «perfect storm» for the price of coffee in Greece. Consumers are advised to prepare for new price increases expected to reach up to 20%. Prices for coffee served in cafes and shops are expected to soar.
In particular, prices for a freddo cappuccino or espresso, which two years ago cost €3.50, are expected to reach between €4.50 and €5. In the case of takeaway coffees, the price of a freddo cappuccino/espresso is expected to increase from €2.50 today to between €2.80 and €3.30.
