Inflation in Greece Driven by Service Sector: Alpha Bank

Persistent ostentation successful Greece is driven by rising costs successful the country’s work sector, which represents 80% of the harmonized scale of user prices (HICP) for the archetypal 9 months of 2025, Alpha Bank notes.

In its weekly analysis, the Greek systemic slope stresses that ostentation successful Greece stands astatine an mean of 3% compared to the 2.1% successful the Eurozone implicit the aforesaid period, remaining astatine the aforesaid levels arsenic successful 2024.

Structural inflation, which does not measurement fluctuating vigor costs and nutrient prices, settled astatine 3.9% compared to 2.4% successful the Eurozone. This notable discrepancy reflects the conditions of excess request against conditions of excess supply.

The main factors driving services inflation—and keeping inflationary pressures elevated—include:

• Strong demand, peculiarly outer request linked to tourism.
• Broad wage increases person had a stronger interaction connected work prices since the assemblage is much labor-intensive than others.
• Higher indirect taxes connected nutrient work and accommodation were introduced successful the mediate of past year.

There is besides a technical factor: the accrued weighting of services successful Greece’s Harmonized Index of Consumer Prices (HICP). In 2025, services relationship for astir 49% of Greece’s HICP—the third-highest stock successful the eurozone. This means that the emergence successful work prices recorded since the start of the year has had a stronger interaction connected wide ostentation successful Greece.

By contrast, the vigor constituent of ostentation made a slightly antagonistic publication during the archetypal 9 months of the year. This was partially owed to falling lipid and earthy state prices since April compared with the archetypal quarter, arsenic well arsenic the weakening of the U.S. dollar against the euro.

The vigor constituent plays a important relation successful easing inflation, arsenic it is intimately tied to broader geopolitical developments marked by precocious uncertainty.

As for marketplace expectations, concern sentiment successful the concern assemblage remains comparatively stable—as bash user expectations. Retailers’ expectations for terms developments, however, are connected a downward trend.