Return to inflation of the ’90s for Greece

By George Lampiris

Greece is accelerating for inflation at the levels of 1993, when the consumer price index was at the level of 12%, after the official announcement of ELSTAT yesterday, which places the consumer price index for May at the level of 11.3%. We remind you that in 1994 inflation was at the level of 10.7%.

ECB: downgraded growth forecasts – Sees further inflation rise

At the same time, the ECB downgraded its growth forecast for the Eurozone at its meeting and revised upwards its inflation forecast. Annual inflation is expected to reach 6.8% in 2022, falling to 3.5% in 2023 and 2.1% in 2024. This marks a significant increase over the March forecast of 5.1% in 2022 , 2.1% in 2023 and 1.1% in 2024.

Growth forecasts were revised significantly down to 2.8% in 2022 and 2.1% in 2023 and slightly revised to 2.1% in 2024. The above comes to compare with forecasts at the ECB meeting in March for 3.7% in 2022, 2.8% in 2022, 2.8% in 2023 and 2.1% in 2024.

New drop in supermarket sales in May due to price increases

In Greece, data from the sales measurement company in the Greek supermarket, Nielsen IQ, show that in the five months of 2022 – until May 29 – sales in value were reduced by 2% compared to the same period last year affected by reduced demand and as a result of price increases on products. Nielsen’s measurement records total sales in supermarkets and discount chains (Lidl). In particular, sales in Greek supermarkets from 4.58 billion euros in the first five months of 2021, decreased to 4.49 billion euros in the first five months of 2022. However, in this reduction we must also take into account the impact of inflation, which makes even greater losses in terms of sales volume, as sales in value also include the recent appreciations. At the same time, sales of fast-moving consumer goods lost value as from 3.2 billion euros in 2021, they reached 3.13 billion euros in the first five months of 2022 with a change of -2.3%.

Hadjitheodosiou: Inflation will exceed 12% in July – Fuel will exceed 3 euros per liter

As the president of the Athens Chamber of Commerce, Giannis Chatzitheodosiou, states in Capital.gr, “the bottom line is that based on what we have in mind, inflation will exceed 12% in June with new increases in basic necessities. The data show that we will have a new rally of increases and there is no measure to stop them. Increases in fuel, food and energy are predominant. “From 3 euros per liter. Many companies will have trouble surviving and repaying their obligations. In addition to the energy measures that are expected to be implemented, other measures will have to be taken.”

11% reduction in sales of small and medium-sized supermarkets

For his part, the president of small and medium-sized supermarkets in Greece, Giannis Pilidis, tells Capital.gr that sales in the five months in value were on average at 0% compared to last year. “Practically, however, taking into account the fact that price increases are currently averaged over the products we sell at 11%, this also means that the consumer buys on average 11% less in volume of products since the turnover is stable compared to last year. ”.

Already at this time, according to Mr. Pilidis, during the months of May and June, price increases were announced in many product categories. “Announcements for new prices concern cold cuts, dairy, stationery, detergents, cereals and many more categories. In most categories the new price increases range between 5% and 6% with the exception of stationery, where increases range between 10% and 15%. “On stationery where we can store, we bought at an old price and therefore the price increases will not be immediately visible on the market.

Average price at 2.38 euros or unleaded at gas stations

For her part, the president of the Attica gas stations, Maria Zagka, demands that horizontal reinforcement be given to unleaded, as has already been done, to oil with a reduced selling price at service stations, as an antidote to the constant increases in fuel. “The average price at the gas station is 2.38 euros per liter with the price per barrel being at the level of $ 122 for crude. Forecasts even speak of $ 150 per barrel from September, a fact that may boost the price of unleaded at 3 euros per liter in Attica and significantly more in the region, according to the president of Attica gas stations “.

“We are currently selling 2,346 liters per liter of plain lead, while we bought two days ago with 2,2850”, he adds.