Greek households are struggling with rising fuel, housing and transportation costs even as the economy continues to grow, with consumers saying the government's latest relief measures will not fully offset sharp increases in everyday expenses.
For Athens delivery rider Vaios Kandris, the strain is most apparent at the gas station. He starts work before much of the city is awake, but how long he can stay on the road increasingly depends on how much gasoline he can afford.
"Fuel used to just be another expense. Now it decides how long I can work. A few years ago gas was cheaper; now, with everything else increasing, I can barely make ends meet," said Kandris.
The delivery rider can no longer afford to fill his motorcycle's tank, buying only enough fuel to complete each day's work.
"I put in 3-4 euros, only what is necessary," he said.
His experience reflects a broader squeeze on household budgets. Greece's economy grew 1.9 percent year on year in the second quarter, while annual consumer price inflation stood at 3.8 percent in August, data from the Hellenic Statistical Authority, or ELSTAT, showed.
Prices in the broad housing category, which covers rents, utilities and household fuels, rose 9.7 percent from a year earlier, while transport costs climbed 7.7 percent.
The government has announced measures aimed at easing the pressure. Greek Prime Minister Kyriakos Mitsotakis addressed the measures at a cabinet meeting on Wednesday.
"First, regarding heating oil, specific announcements will be made. Our aim is to bring the price below 1.75 euro per liter," Mitsotakis said.
The prime minister said there would be an increase in the heating allowance, with details to be announced before heating oil goes on sale on Oct. 15. The government also raised its diesel subsidy at the pump from 10 to 15 euro cents per liter for the first 15 days of October. Together with discounts offered by refiners, the total reduction will reach 20 euro cents per liter.
The Union of Working Consumers of Greece, however, said the measures would not be enough to offset the price increases households had already absorbed.
"Whatever interventions are made, the price certainly will not return to 1.10 euros. Even at 1.70 euro or 1.60 euro, that still means an increase for the consumer of around fifty percent compared with last year," said Apostolos Raftopoulos, president of the union.
Earlier in September, Mitsotakis unveiled a four-year package of tax breaks and income-support measures expected to cost 3.5 billion euros by 2030.
Inflation squeezes Greek households despite economic growth
Inflation squeezes Greek households despite economic growth
