Inflation in Greece reached 3.1% in March, up from 3% in February, according to preliminary estimates from Eurostat. In contrast, inflation in the eurozone edged down to 2.2% from 2.3% in February.
Greece recorded the highest monthly increase among eurozone countries, with a 1.8% rise, indicating persistent price pressures in the country.
Breakdown of Inflation Components in the Eurozone
Examining the key components of eurozone inflation, services are expected to have the highest annual rate in March at 3.4%, down from 3.7% in February. This is followed by food, alcohol, and tobacco at 2.9%, up from 2.7% the previous month. Non-energy industrial goods remained stable at 0.6%, while energy prices declined by 0.7%, reversing a 0.2% increase in February.
Core inflation, which excludes volatile items such as energy and unprocessed food, also slowed to 2.4% annually from 2.6% in February.
Inflation Trends Across Key Eurozone Economies
In Germany, inflation slowed, with consumer prices rising 2.3% annually, maintaining the same rate as in the previous two months. In France (0.9%) and Spain (2.2%), inflation was lower than analysts’ forecasts. Meanwhile, Italy saw a stronger-than-expected rise, with inflation reaching 2.1%.
Bank of Greece Revises Inflation Forecasts Upward
The Bank of Greece has raised its inflation forecast for 2024 to 2.9%, up from a previous estimate of 2.5%, suggesting that price pressures will remain higher than initially anticipated. According to the central bank’s latest projections, inflation is expected to decline to 2.3% in 2026 but will stay above the European Central Bank’s (ECB) 2% target. It is then projected to rise again to 2.5% in 2027.
This development raises concerns, particularly amid ongoing global trade tensions, which could trigger further price increases worldwide.
Revised Growth Forecasts
Alongside inflation adjustments, the Bank of Greece has lowered its economic growth projections. The Greek economy is now expected to expand by 2.3% in 2025 and 2.1% in 2026, down from previous estimates of 2.5% and 2.3%, respectively. These revisions were published in the latest “Note on the Greek Economy.”
