Inflation at 6.2% on an annual basis in January – The highest since Greece entered the euro

The increase of the consumer price index in January 2022 compared to January 2021 amounted to 6.2%, according to the data announced by the Hellenic Statistical Authority (ELSTAT).

This is the highest recorded inflation on an annual basis since Greece entered the single European currency.

In the corresponding month last year, a decrease of 2% was recorded compared to January 2020.

The index decreased by 0.3% in January 2022 compared to December 2021, showing a slight downward trend.

The average CPI of the twelve months February 2021 – January 2022, compared to the corresponding Index of the twelve months 2020 2020 – January 2021, showed an increase of 1.9%, compared to a decrease of 1.5% in the corresponding comparison of the twelve months February 2020 – January 2021 with the twelve months February 2019 – January 2020

The current situation, based on current data, foretells a very difficult first half in terms of price developments, as the pressure from fuel and food will continue for the rest of the first half of the year.

Then, unless something extremely unexpected happens (eg a further escalation between Ukraine and Russia) that would further increase energy prices, inflation will automatically fall due to the “base effect”. That is, the fact that now the prices of 2022, will begin to be compared with the corresponding prices of 2021, which were also increased.

The big question is how inflation will develop in the medium term. That is, if after the middle of next year, prices after a period of stabilization will begin to decline, approaching the levels of 2019 or will remain at high levels, continuing to push family budgets.