Recent reports indicate that inflation in Greece has reached 2.5% for 2026, exceeding the 2% target set by the European Central Bank. This spike in inflation is attributed to rising rents and food prices, which have intensified the financial burden on the most vulnerable households, already struggling since June 2021. The data from the Hellenic Statistical Authority (ELSTAT) highlights Greece's position as having the third-highest inflation rate in the Eurozone, causing concern about economic stability.

As the new year begins, the inflation gap between Greece and the average Eurozone countries has widened; Greece’s inflation is significantly higher than the Eurozone average of 1.7%. Consumer confidence has plummeted, with recent surveys indicating that around 60% of households anticipate worsening financial conditions in the coming year, while only 4% expect any slight improvement. This expectation mirrors widespread public anxiety about the sustained rise in living costs and the potential for further economic decline.

The ongoing economic challenges underscore the critical need for policymakers to address these inflationary pressures effectively. Without intervention, the widespread fear of financial instability could lead to decreased consumer spending, further fuelling economic stagnation. Households, particularly those on lower incomes, are in a precarious situation as they brace for another year of heightened inflation and economic uncertainty.