Greek Inflation Hits 5.6% in October, Exceeding Eurozone Average of 4%
Key Facts
Annual inflation in Greece accelerated to 5.6% in October, exceeding the eurozone average of 4%, according to a preliminary reading published by Eurostat on Wednesday. The reading puts Greece above the regional average as prices rose at a slower pace in the region’s largest economies. Kathimerini, citing The Associated Press, said Greek inflation "accelerated to 5.6% in October," according to preliminary data. Higher energy prices were the clearest driver of the reading, as the annual rate rose faster than in September. Greece’s full index is scheduled to be confirmed on November 10, before Eurostat publishes full eurozone data on November 18.
Annual energy inflation in Greece rose to 26.5% in October, compared with 25.4% in September, according to data reported by Naftemporiki. This means energy prices rose at a faster pace during the month, remaining one of the main sources of pressure on the overall index. The acceleration came as the European Central Bank warned that a prolonged energy shock could push inflation higher. The bank also warned that the same shock could weigh on economic growth, putting price pressures and weaker activity at the center of monetary policy calculations. Policymakers indicated they were prepared to raise interest rates again if price pressures intensified.
Prices for food, alcohol and tobacco in Greece rose 1.4% year on year in October, after a slight decline of 0.1% in September, according to Naftemporiki. The shift from a slight decline to an increase shows that pressures in this group returned to positive territory during the month. This coincided with an acceleration in the energy index, while not all price components moved in the same direction. In services, prices rose 6.3% year on year in October, compared with 6.4% in September. Despite the modest decline, services inflation remained above overall eurozone inflation, keeping this component a persistent source of price increases in Greece.
The picture diverged between Greece and Germany in October: annual inflation in Germany fell to 2.8% from 3.3% in September, according to data reported by Kathimerini and The Associated Press. Germany is Europe’s largest economy, and its slowdown came in the same month Greece posted a preliminary reading of 5.6%. The eurozone average also remained at 4%, below the Greek reading and well above Germany’s level. This divergence highlights differing price paths across the region’s countries, with energy rising in Greece and inflation easing in Germany. Greece’s October figures remain preliminary pending the scheduled confirmation on November 10.
The European Central Bank had warned that a continuing energy shock could combine higher inflation with weaker economic growth. Policymakers said they were prepared to raise interest rates again if price pressures intensified, signaling that the inflation trajectory will remain a decisive factor in their decisions. In Greece, energy prices accelerating to 26.5% year on year puts that warning in direct context, alongside services inflation remaining at 6.3%. Confirmation of Greece’s full index is scheduled for November 10. Eurostat will publish full eurozone data on November 18, with the two subsequent readings providing a broader picture of the price trajectory.