Inflation in Greece moved to 9.5% in October 2022, according to Eurostat’s final data. At the same time, the eurozone is registering record inflation of 10.6%.

Forecasts for Greece

Based on projections included in the draft budget, inflation will fall to 3.1% in 2023 from 9.1% this year.

The Foundation for Economic & Industrial Research estimates that prices will remain on an upward trajectory this year, in the region of 9.7%, mainly due to the strong rise in energy product prices, but also consumer demand. For 2023, and taking into account the assumptions and trends shaping the prices, it is predicted that the General Consumer Price Index will hover around the region of 4.2%.

Regarding inflation in Greece, the IMF however estimates that it will shape up – based on the harmonized consumer price index used by Eurostat – at average levels this year at 9.2% to decline to 3.2% in 2023 and further to 1, 9% in 2027.

It is worth noting that the final draft of the Budget, which will be tabled on November 21, will include changes in estimates, due to both energy and food prices. According to information, the estimate for this year’s inflation will increase to close to 10% for 2022, from an initial forecast of 9.1%, as well as close to 5%, for 2023.

According to the winter forecasts, the Commission predicts a jump in inflation to 10% for Greece in 2022. At the same time, he “sees” it staying at a high of 6% for 2023, which is cause for concern.

Forecasts for Europe

Inflation has not yet peaked in Europe, according to the Commission’s latest estimates.

Higher-than-expected inflation readings in the first ten months of 2022 and widening price pressures have pushed the peak of inflation towards the end of the year and raised the annual inflation rate projection to 9.3% in the EU and to 8.5% in the euro zone.

Inflation is expected to ease in 2023, but will remain high at 7.0% in the EU and 6.1% in the euro area, before easing in 2024 to 3.0% and 2.6% respectively.

Compared to the summer interim forecast, this represents an upward revision of nearly one percentage point for 2022 and more than two points for 2023. The revisions primarily reflect significantly higher wholesale gas and electricity prices, which put pressure on retail energy prices as well as on most goods and services in the consumption basket.