Greek Inflation Rate Falls Below Eurozone Average

Inflation rates in Greece have dropped significantly, falling below the eurozone average for July. According to revised Eurostat data, the harmonized index of consumer prices (HICP) rose to 2.7% year-on-year in July from 3.9% in June.

The decline reflects a leveling of prices in foods and services, as well as a drop in energy costs. This is the second consecutive month that HICP has dropped, after reaching its peak of 4.9% in May.

Energy prices remain a major source of uncertainty, but food prices have decreased substantially. According to Eurostat's data, the prices of food, spirits, and tobacco dropped 2% on a monthly basis in June, with a year-on-year rate at -0.3%, compared to 2.2% in July 2025.

Panayotis Kapopoulos, chief economist at Alpha Bank, noted that inflationary pressures peaked in spring 2026 and attributed the drop in rates to deceleration in non-processed foods and services prices, as well as favorable base effects.