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Prices soar while we become poorer

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We might be becoming poorer day by day, but product prices keep climbing. As announced by ELSTAT, inflation in September rose from 1.7% to 3.1% in August, and 2.4% since July.

We might be becoming poorer day by day, but product prices keep climbing. As announced by ELSTAT, inflation in September rose from 1.7% to 3.1% in August, and 2.4% since July.

The cause is price increases in the vast majority of products and services, as recorded by the Hellenic Statistical Authority (ELSTAT), with the largest price differences observed in housing (electricity tariffs, natural gas) and transportation (petrol).

ELSTAT announced the following:
A comparison between the Overall Consumer Price Index in September 2011 and the corresponding index of September 2010, shows a 3.1% increase compared to a 5.6% increase achieved in the same comparison betweem 2010 and 2009.

The increase was driven by the following changes:
1-    Increases in indicators:
a) 2.2% in the “Food and non-alcoholic beverages” group, because of price increases, especially in cereals, meat, fresh fish, dairy and eggs, oils and fats, sugar-chocolate-ice cream, coffee, soft drinks and juices. Part of this increase was offset by lower prices in fresh fruit and vegetatbles.    

b) By 5.8% in the “Alcoholic beverages and tobacco” group, due to the price increases on cigarettes

c) 2.8% in the “Clothing and footwear” group due to price increases in both

d)8.3% of the “Housing” group, due to increasing prices in heating petrol, natural gas, electricity, rent and residence repair and maintenance equipment.

e) 0.8% in “Durable goods-Household goods and services" due to price increases in the forms of direct household consumption.

f) 4.8% in the “Transport” group due to increases in fuel and transport services. Part of this increase was offset by price reductions in road taxes and car prices.

g) 0.6% in the “Communications” group, due to an increase in the prices of telephone services.

h) 2.9% in the “Hotel-Café-Restaurant” group, due to the increase of restaurant, bakery, cafe and canteen prices. Part of the increase was offset by lower prices in hotels.    
   
i) 2.7% in the “Other goods and services” group, especially for insurance on cars, motorcycles and personal care items.

2-    Reductions in indices:

a)    0.7% in the “Health” group, due to reduced drug prices. Part of this reduction was offset by increased hospital fees in private clinics

b)    0.3% in “Recreation-Cultural activities” due to reduced prices for audiovisual equipment and computers. Part of this reduction was offset by higher prices in books, stationery, school supplies and holiday packages.

c)    0.4% in the “Education” group due to reduced prices in foreign language tuition, tutoring and vocational training institutions.

At the same time, the September 2011 overall index, compared to the August 2011 one, increased by 3.3% as compared to a 1.9% increase noted in the corresponding terms of the previous year.

The Harmonized Index of Consumer Prices rose by 2.9% in September, from 1.4% in August this year, and by 5.7% in September 2010. On a monthly basis, harmonized inflation increased by 3.4% compared to 1.9% last year.
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