BoG is worried about prices

Bank of Greece Governor Yannis Stournaras suggests in the Monetary Policy Report published on Wednesday that the containment of salary raises and goods and services price hikes to levels compatible with the medium-term inflation target, as well as increased checks to ensure respect of competition rules and the imposition of sanctions where necessary and, finally, the removal of all kinds of obstacles to competition.

The Bank of Greece has been carefully studying the issue of inflation lately, saying it is a key source of concern, as it finds, among other things, that many supermarket products are more expensive in Greece compared to abroad, while it predicts that the expected increases in wages will make service inflation more persistent going forward. Stournaras, however, touched on other problems of the Greek economy, which include its production model and long-term...