Macro roundup: Double-digit inflation
Food and energy still dominate as Greece's inflation rate hits 22-year high in April
The annual growth in Greece’s consumer price index hit 10.2 percent in April, moving into double digits for the first time since 1995.
Using the EU-harmonised inflation measure, Greek prices rose 9.1 percent, compared, with 8 percent in March. This measure establishes a benchmark comparable across the eurozone, where the inflation rate rose to 7.5 percent in April from 7.4 percent the month before.
While Greece’s inflation rate has streaked ahead of the euro area average this year, it’s worth reiterating the point that this is partly down to base effects, on account of the drop in prices here in 2020. On a two-year basis, Greece’s EU-harmonised index is 8 percent higher than it was in April 2020, whereas eurozone prices increased 9.2 percent during the same period.
Energy costs remain the major driver of inflation, with an 88.8 percent increase in electricity alone accounting for one third of the overall increase in the national index. Food and non-alcoholic beverages rose 10.9 percent, accounting for 2.4 percentage points of the increase in CPI basket.
Industrial production in March increased 7.9 percent compared with a year earlier, with the manufacturing up 4.3 percent. Electricity supply jumped 26.8 percent from the year before.
The import price index in industry rose 34.6 percent in March.
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Next week’s key releases
Monday, May 16:
January-April state budget execution (Finance Ministry)
Wednesday, May 18:
March unemployment (Elstat)
Thursday, May 20:
March balance of payments (Bank of Greece)
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