Greece: Inflation inches up in September
October 7, 2010
In September, consumer prices rose 1.9% over the previous month, which contrasted the 0.7% drop recorded in August. The monthly price increase mainly reflected higher prices for clothing and footwear (+17.6% month-on-month), owing to the end of seasonal sales. The increase was also fanned by higher prices for food and non-alcoholic beverages (+0.7% mom) and household equipment (+5.4% mom), which helped offsetting lower prices for alcoholic beverages and tobacco (-1.4% mom). Due to the monthly reading, annual inflation inched up from 5.5% in August to 5.6% in September, which represents the highest level since 1997. Meanwhile, the harmonised index of consumer prices (HICP) also inched up in September, thus driving annual average harmonised inflation up to 3.9% (August: +3.5%). The European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF) expect 2010 inflation to end the year at 4.8%. In 2011, inflation is likely to moderate sharply to 1.5% - 2.0% amid subdued economic activity and high unemployment.