Greece's Inflation Rate Slows to 3.4% in July

Greece's inflation rate slowed to 3.4% in July, down from 4.4% in June, according to the Hellenic Statistical Authority (ELSTAT). This marks the second consecutive month of slowing inflation and is a positive development for households and businesses. Lower energy costs and stabilization in food prices contributed to the slowdown.

The moderation in price pressures also gives the European Central Bank more room to consider interest rate cuts, potentially easing borrowing costs for Greek businesses and mortgage holders. However, services inflation remains sticky, keeping overall price growth above the 2% target set by the ECB.

Economists project that inflation will continue to moderate gradually, averaging around 3.5% for 2025. But risks remain, including geopolitical tensions, supply chain disruptions, and wage growth.