ATHENS (MNI) – Greeces inflation remained near record levels in
June, easing to an annual rate of 5.2% from 5.4% in May, the national
statistics service said Wednesday. These levels are the highest the
country has seen the past 18 years.
Inflation was fueled by hikes in prices for alcohol and tobacco
products and transportation costs. Fuel prices increased by 42.2% on the
year, heating oil by 39.6%, toll prices by 28.4%, tobacco by 19.8% and
alcoholic beverages by 14.3%.
Market analysts expressed fears that inflation could reach 6% in
July due to a series of tax increased imposed by the government as part
of its austerity program.
In a report published by the European Commission late Tuesday, EU
and IMF officials who inspected the Greek economy in June concluded that
part of the indirect tax increase had hit product prices because of the
inflexibility of the domestic markets.
Economics Minister Luka Katseli has announced a series of
inspections to avoid overpricing and asked firms to restrain prices, as
private consumption has slowed dramatically after a series of cuts to
salaries, pensions, benefits and allowances.
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