Greece’s 5.2% inflation strains households and firms

Greece’s consumer price index rose to 5.2% in May, a slight dip from April’s 5.4% but still well above the Eurozone average. The increase was driven by sharp rises in housing costs (+11.6%), transport (+11.5%), fuel (+24%) and energy prices, with natural gas up 21% and heating oil 53.2%. Food prices also climbed, led by meat (up to 17%).

The Piraeus Chamber of Commerce warned that prolonged price pressure is eroding disposable income, forcing households to focus on essential spending such as housing, energy and food while cutting back on non‑essential goods. Businesses face higher operating costs from rising energy, raw material and logistics expenses, squeezing profit margins and raising borrowing costs. Larger retailers are better able to absorb the shock, creating a “two‑speed” market that disadvantages smaller firms.

The chamber called for measures to boost real incomes, reduce tax burdens and lower non‑wage costs to help both consumers and companies cope with the inflationary environment.