•
In alcohol and tobacco, the CPI rose by 18.9%,
as compared to 6.3% in 2009.
•
In housing, it registered a 7.5% increase, as
compared to 3.2% in the previous year. This
category also includes heating oil, whose price
increased by 33.5% during the year.
•
In transportation, inflation climbed to 15.1% as
compared to 8.5% in the previous year. Petrol
prices increased by 43.7% in just one year.
•
VAT increases are largely responsible for a
1.9% increase in the CPI for food, as com-
pared to a 1% drop in 2009.
•
Moreover, VAT increases accelerated inflation in
durable goods from 1.3% to 2.1%, in hotels
and catering from 0.8% to 2.9% etc.
Tax-push inflation is a principally growth-impeding
phenomenon, since any “reserves” generated by
price increases are directed to the state coffers.
Under normal conditions, inflation generates
resources that are directed to investment; in other
words, no matter how onerous it may be for con-
sumers, it does have a growth aspect.
However, under the conditions currently prevail-
ing in Greece, not only there is nothing left to
Trade with Greece
45
Volume of retail sales in the past three-years (2005=100) Average figures, January-November
2010
2009
Overall Index
-5.3% -10.2%
Food sector
-4.2% -6.5%
Non-food sector
-6.6% -13.5%
Supermarkets
-4.0% -7.0%
Department stores
-10.9% -11.2%
Food-beverages-tobacco
-2.7% -2.7%
Pharmaceuticals-cosmetics
-0.4% 1.5%
Apparel-Footwear
-9.9% 1.6%
Furniture, electrical equipment, household equipment
-10.3% -17.4%
Books-stationery-other goods
-2.4% -26.0%
Turnover index in retail trade (January-November)
Sectors
2008
2010
change
Overall Index
111.3
92.8
-16.6%
Overall index (excluding automotive fuel)
107.2
91.0
-15.1%
Food sector
108.1
96.6
-10.6%
Non-food sector
107.5
86.9
-19.2%
Supermarkets
112.9
100.6
-10.9%
Department stores
122.1
96.6
-20.9%
Automotive fuel
126.5
81.3
-35.7%
Food-beverages-tobacco
92.9
87.9
-5.4%
Pharmaceuticals-cosmetics
105.4
106.5
1.0%
Clothing-Footwear
93.4
85.6
-8.4%
Furniture, electrical equipment, household equipment
118.9
88.2
-25.8%
Books-stationery
104.9
75.6
-27.9%
Source: ELSTAT
Dec 09
Dec 10
Food
-1.0% 1.9%
Alcoholic beverages & tobacco
6.3% 18.9%
Clothing-Footwear
2.8% 2.3%
Household equipment
1.3% 2.1%
Housing
3.2% 7,5%
Transport
8.5% 15.1%
Hotels, Cafes & Restaurants
0.8% 2.9%
Overall Index
2.6% 5.2%
CPI changes in major groups
of goods and services
