Grains, fuel driving inflation

Expectations of a de-escalation in inflation, especially food prices, which concern most people, are clearly diminishing, since production costs, but also profiteering, are set to add another round of price hikes.

Last Monday, Eurostat published inflation figures that showed a reversal of a nine-month decline for Greece. The Harmonized Index of Consumer Prices rose to 3.4% year-on-year in July from 2.8% in June. In the 20-member eurozone, inflation dropped to 5.3% from 5.5% in June.

Fueling inflation are grains, olive oil and fuel, with the latter having an impact on several products and services. Officials also say that more than just production costs are involved, blaming profiteering. The most recent statement came from Bank of Greece Governor Yannis Stournaras talking to TV network CGTN, saying that, for the first time in many years, price increases are far...