New increase in inflation in the next two months

of Eleni Botas

Further escalation of inflation is expected in the next two months – May and June – according to government sources.

The new “rally” after the announcement of the inflation data for April, is expected to continue for the next two months, as a high-ranking government official confirmed yesterday, while a de-escalation is expected from July.

“We expect the peak of inflationary pressures in the next two months and the de-escalation of inflation from the beginning of the second half of the year,” the same source said.

In April, according to ELSTAT data, inflation climbed to 10.2% reaching approximately the levels found in the mid-1990s with the drachma as the currency, mainly due to the prices of energy products that are responsible for the 6.61% increase in the general index and food.

Based on the data, prices for natural gas recorded an increase of 122.6% for April, electricity for 88.8%, heating oil by 65.1% and fuels and lubricants by 29%.

Basic food prices increased by 22% in oils and fats, 14.1% in meat, 13.8% in fresh vegetables, 11.7% in dairy and eggs and 10% in bread and cereals, due to the continuing war in Ukraine that has blocked the export of large quantities of cereals.

There were also large increases in fresh fruit (8.6%), coffee, cocoa and tea (7.1%) and other foods by 5.6%. Sugar, chocolate and sweets increased by 3.4% and bottled water, soft drinks and fruit juices by 3.8%.

In addition to increases in food and fuel, the statistical service recorded increases above monthly inflation in prices for passenger transport by ship by 17.7% by plane by 15.8% and used cars by 11.3% ( new cars record an increase in their prices by 8.9%).