Despite Slower Inflation in Greece, More Households Struggle to Make Ends Meet
Greek inflation dropped in September, but the share of households facing financial hardship reached 65 percent as rising living costs continue to strain budgets.
Greece’s annual harmonized inflation rate fell to 1.8 percent in September, marking a noticeable decline from August’s 3.1 percent and coming in below the eurozone average of 2.2 percent, according to Eurostat data. Still, despite cooling inflation, this has done little to ease the burden on many Greek households, whose financial struggles have persisted. In fact, the share of households reporting difficulties making ends meet climbed sharply to 65 percent in September, up from 59 percent a month prior. Low-income retirees and citizens facing soaring rent costs are among those most affected, as the lingering impact of more than 21 percent cumulative price increases over the past five years makes basic necessities increasingly unaffordable.
Breaking down the numbers, Eurostat reports a 3.7 percent annual decline in energy prices, largely driven by cheaper petroleum products. However, the relief is offset by continuing hikes in electricity costs, creating uncertainty for consumers. Food price increases have moderated to 1.4 percent from previous highs, but shoppers still feel the pinch—especially when it comes to fresh produce, where price spikes are most pronounced. Service prices saw a 3.4 percent annual rise, while industrial goods saw a modest 0.5 percent increase. Core inflation, which excludes energy and food costs, stood at 2.6 percent, above the eurozone average and prompting concern from the Bank of Greece. On a monthly basis, inflation ticked up 0.6 percent, a rate surpassed only by Italy and Portugal in the region.
Experts warn that due to so-called base effects from last year’s high prices, inflation may appear subdued, but real losses in purchasing power are ongoing for households. Looking ahead, both the impact of new supermarket discount initiatives and future energy market developments are uncertain, leaving many Greeks anxious about whether these changes will bring real relief from the persistent cost of living pressures.
