The economic team in Greece is focusing on maintaining food prices and containing fuel increases as it seeks short-term solutions amid concerns over a difficult winter. Recent data shows inflation in Greece rose to 5.1% in September from 3.7% in August, according to Eurostat, with the Eurozone average climbing to 3.8% from 3.2% in the same period. Energy prices in Greece surged by 25.4%, significantly higher than the Eurozone’s 18.8% increase. Food prices saw a slight decline of 0.2% in Greece, contrasting with a 1.2% rise in the Eurozone, while service costs jumped 6.3% in Greece compared to 3.2% across the bloc. The structural inflation rate reached 4.5% in Greece, up from 2.5% in the Eurozone.
Efforts to Stabilize Prices
The government launched a price control initiative in late August, set to conclude by the end of October, aiming to prevent high fuel prices from spilling over into food costs. Officials, including Finance Minister Kyriakos Pierrakakis, emphasized that while they will not seek to reduce the value-added tax (ΕΦΚ) on fuel, they will continue pushing for greater fiscal space to support households and businesses. Success so far appears to have stemmed the rise of energy costs from affecting food prices. However, Greece’s heavy reliance on fossil fuels has led to steeper energy price increases compared to other regions.
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Proposals for additional economic support are underway, including a potential G7 agreement to release 100 million barrels of oil to ease global prices, similar to actions taken in April. The U.S. presidential election in November raises uncertainties, particularly regarding Iran negotiations or ongoing airstrikes. In northern and southern Europe during November, peak seasonal demand for energy and heating could intensify pressure, especially if energy prices exceed current levels.
Food Price Concerns and Fuel Subsidies
Food price stability remains uncertain. The period of supermarket price caps ends this month, and without a new agreement, rising production costs could trigger sharp food price hikes. Currently, subsidies on fuel continue, linked to transport costs, but no other measures exist to support food prices. A change in climate by the end of the month is required to strengthen this year’s heating allowance, for which 270 million euros have been allocated in the 2026 budget.
