Inflation: Gasoline at historical record – VAT reduction scenarios being considered but Greece does not have a money tree!

Inflation is galloping the government’s financial staff are constantly doing exercises on paper in order to find a “cure” for mitigating the consequences for households. The price of gasoline is at an all-time high, Brent is above $ 90 a barrel and the reduction in VAT on food seems closer than ever.

In the context of the fight against inflation the Minister of Finance Christos Staikouras from the floor of the Parliament left open once again the possibility of reducing the VAT on food  emphasizing that everything is examined and nothing has been ruled out  based on priorities, needs. and fiscal discipline.

However, the Minister of Finance announced the taking of other support measures, typically saying “we will take more measures”, but at the same time took care to lower the bar of expectations, emphasizing that ” there are no money trees in Greece “.

According to credible information they have started contacts with the lenders in order to fireball their intentions rather than to make decisions.

Finance ministry officials say the conditions for final decisions are not yet ready and they will first wait to see the course of inflation and the evolution of fiscal growth. In order for any decision to be taken there must first be a corresponding budget space.
On the inflation front as evidenced by recent Eurostat data the picture alone is not good. Everything shows that based on the data the Consumer Price Index will climb close to 6% in January, maybe even more .

What is more troubling than anything else is that there are no visible signs of a halt to this wave, as prices for electricity, food and agricultural raw materials remain high, with a recent rally in fuel prices .

In fact, the situation was aggravated by the bad weather, which caused damage to crops, resulting in significant price increases for fresh fruits and vegetables.

Another unbalanced factor is the latest developments on the Russian-Ukrainian border. No one is able to know how these will determine the course of gas prices.

Brent sees $ 100

Meanwhile yesterday the price on Brent made a new rally and exceeded $ 90 a barrel. Shortly before midnight it was at $ 91.2, something that had been happening since the summer of 2014.

According to the price observatory of the Ministry of Development, the national average price of unleaded gasoline was 1,837 euros per liter the day before yesterday , just one millimeter lower than the absolute record recorded in our country in August 2012, with a national average price of 1,838.

The price of diesel was 1,578 euros per liter and diesel was 1,237 euros.

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