Inflation was 2% in October – Food prices rose again, rent increases were smaller

Marginal acceleration was noted by inflation in October, according to ELSTAT’s monthly report, with the prices of food to “pinch” upwards.

Headline inflation accelerated to 2% in October from 1.9% in September, while Eurostat’s harmonized index stood at 1.7%. Food price increases are significantly above average. In meats +10%, fruits +9.1% and chocolate products +21.1%. In fish prices increased by 4.% and in dairy products by 4.4%, while in vegetables there was an annual decrease of 5.6%.

In housing, rents remain extremely high but with a clearly decelerating pace, at 8.9% year-on-year, from 9.9% in September.

In the main spending groups, the biggest annual increase is recorded in Hotels-Cafes-Restaurants with 6.5%. This is followed by Education with 2.8%, Food and non-alcoholic beverages with 2.3%, Clothing-Footwear with 1.9% and Housing with 1.4%. Leisure-Culture rose 1.0%, Transportation 0.7%, Health 0.6%, Communications 0.8%, Durables-Household Goods 0.7% and Other Goods-Services 0.5%.

In catering services, restaurants-patisseries-cafes-canteens increase prices by 7.8%, while hotels fall by 16.3% on an annual basis. In Education, pre-primary and secondary school fees are rising from 3.2%.

In Health, medical-dental-paramedical services increase by 2.7% and hospital care by 0.7%, while pharmaceuticals decrease by 0.9%. In Communications, telephone services recorded an increase of 1%.

In Transportation, increases are noted in new cars (+2.4%), spare parts-accessories (+4.1%), maintenance-repair of personal transportation equipment (+6.0%), other personal transportation services (+3.1%) and air tickets (+5.8%). Second-hand cars (−4.9%) and fuels and lubricants (−1.6%) are moving downwards.

In other goods and services, prices at hairdressing salons and personal care stores are up 4.1%, health insurance premiums are up 7.0% and other services are up 4.8%, while other personal care items are down 2.5% and motor insurance premiums are down 1.0%.

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