Why is Greek economic growth "feeding" inflation? - The reason is high consumption, rising rents and wealthy tourists
The Greek economy's strong performance has been supported by domestic demand and a surge in tourism, especially from high-income visitors. But these factors, along with rising housing rents and high electricity prices in recent months, have fueled inflation in Greece.
As a result, although inflation slowed in August (3.1% according to Eurostat estimates for the harmonized index of consumer prices) compared to July (3.7%), it remained above the 3% level and continues to have a significant difference with the eurozone (2.1%).
Meanwhile, food inflation in Greece was lower in August than the eurozone average (2.4% in Greece versus 3.2% in the eurozone). Competent government sources say that there are serious violations of the code of ethics by traders regarding offers and discounts, and if these are confirmed, fines will be imposed. However, inspections are also being used as a means of putting pressure on the sector to curb price increases.
According to an analysis by the National Bank of Greece, inflationary pressures are expected to decline significantly in 2026. Inflation could slow down more quickly if the current high geopolitical uncertainty eases. The average increase in the consumer price index for 2025 is estimated at 2.8% (3.3% for the harmonized index), while for 2026 at 2.2% (2.5% for the harmonized index).
The strong performance of the Greek economy is contributing to rising inflation because it is fueled by high domestic demand. Meanwhile, there is also the so-called "output gap", which is set to widen by 2.5% in 2025, reaching its highest level since 2007. The output gap occurs when actual Gross Domestic Product is lower than potential, that is, what the economy is theoretically capable of producing. The large increase in this gap indicates that demand has expanded more than total productive capacity.
The super-rich are choosing Italy - Stimulus policies and favorable taxes attract billionaires
Italy, a perennial destination for the rich and famous, is attracting a new wave of ultra-wealthy individuals looking to take advantage of an......
Britain could save £5bn a year on energy - Removing gas plants from the market will lower bills for households, businesses
The British government could save energy users up to £5 billion a year by reforming the electricity market. The reform would prevent wholesale power prices......
Spain, tourist season knows no bounds - It welcomed 11 million visitors in July. High influx expected in September as well
Spain is once again breaking records in the tourism sector. The latest data from the National Institute of Statistics shows that the country received 11......
Trump warns of tariffs on chips - Measures will target companies that do not move production to the US
President Donald Trump said his administration will impose tariffs on semiconductor imports from companies that do not move production to the United......
"Europe on the brink of energy crisis" - Goldman Sachs: The risk comes from increased demand, lack of investment
Europe risks facing a new electricity crisis unless nearly 3 trillion euros are invested over the next decade. This is the main message from Goldman Sachs,......
Green Coast puts Albania on the map of investors even beyond borders
Albania is increasingly affirming itself on the international tourism and investment map, attracting the attention of global actors. In addition to its......
'In the Llogora tunnel, the fee is 250 lek with VAT per vehicle' - Balluku: Qukës – Qafa e Plloçës road, accessible from tomorrow
Today in Tirana, the "Tourist Albania 2030" event took place, a national platform for discussing and setting new milestones in the sustainable development of......
E-Albania reaches over 31 million transactions in August/ Personal and family documents, the most requested
In August 2025, the e-Albania government platform has set record figures in the use of electronic services, increasingly becoming the main link of......
