Greek inflation slows to 3.4% in July as housing and fuel costs keep climbing

Inflation decelerates for third consecutive month

Greece's annual inflation rate slowed to 3.4% in July 2026, down from 4.4% in June and 5.2% in May, marking the third consecutive month of deceleration according to data released by the Hellenic Statistical Authority (ELSTAT). The July figure compares with 3.1% in July 2025. On a monthly basis, the Consumer Price Index fell 1.4% compared with June 2026, partly driven by summer sales, versus a 0.4% monthly decline in the year-earlier period. The 12-month average inflation from August 2025 through July 2026 climbed to 3.3%, up from 2.6% in the previous corresponding period.

Housing and energy drive the cost of living

Housing posted the largest annual increase at 8.8%, contributing 1.33 percentage points to the headline index, the single biggest impact of any category. Rents rose 6.8% year-on-year, home repair and maintenance costs climbed 4.8%, and household-related services increased 5.5%. Energy prices within housing showed sharp divergences: heating oil rose 53.2%, natural gas rose 16.7%, and solid fuels gained 4.1%, while electricity prices fell 2.2%. Transport costs increased 7.4% annually, with motor diesel up 22.1%, gasoline up 13.3%, air passenger transport up 17.5%, and vehicle maintenance and repair up 3.7%.

Food prices show wide divergences

The overall food and non-alcoholic beverages category rose just 0.4% year-on-year, but masked substantial variation across products. Beef prices climbed 14.3%, lamb and goat meat 12.4%, cured fish 9.6%, margarine and vegetable fats 8.6%, pork 3.4%, dairy and eggs 2.9%, poultry 2.2%, and bread and bakery products 1.2%. Olive oil prices fell 21.7%, fruits dropped 9.4%, ice cream declined 8.8%, fresh or frozen fish fell 2.6%, vegetables decreased 1.5%, and salt, sauces and seasonings fell 5.8%. On a monthly basis, fruits fell 13.1%, natural gas dropped 3.7%, yogurt fell 2.9%, lamb and goat meat fell 2.4%, and vegetables fell 1.7%, while pork rose 2.0%, eggs rose 3.5%, and cheese rose 1.0%.

Services and other categories

Hotels, cafes and restaurants saw prices rise 5.8% annually, with restaurants, confectioneries, fast food and canteens specifically up 6.4%. Holiday packages increased 6.2%, health insurance premiums 7%, vehicle insurance 1.9%, and hairdressing and personal care services 4.2%. Clothing and footwear rose 3.3% annually but fell 19.2% month-on-month due to summer sales. Education costs increased 2.8% annually, with tuition fees up 3.2%. Health costs rose 1.1%. On a monthly basis, motor diesel rose 12.1%, air fares climbed 13.7%, electricity rose 0.6%, and rents edged up 0.3% compared with June.

Government response and outlook

The Greek government is placing emphasis on the second phase of its "gentlemen's agreement" with the market, scheduled to begin on 31 August 2026, which requires price reductions of at least 5% on basic supermarket items. The resumption of hostilities in the Middle East, following a brief June ceasefire, continues to sustain inflation concerns and expectations. The government's agreement with retailers aims to ease pressure on household budgets, though the scope covers basic supermarket items rather than the energy and housing costs that drove most of July's inflation reading.