ECB policy outlook and food inflation trends in Greece

Households and businesses are facing financial strain as the European Central Bank (ECB) prepares for its next policy meeting on October 28-29 in Frankfurt. Analysts surveyed by Reuters expect the central bank to maintain its current deposit facility rate of 2.50%, following a 0.25 percentage point hike in September. Further interest rate increases are widely anticipated by December to combat persistent inflationary pressures arising from energy costs and economic volatility.

Meanwhile, in Greece, the Minister of Development, Takis Theodorikakos, reported that food inflation turned negative at -0.2% in September, bucking the general inflationary trend. This fluctuation follows government initiatives aimed at price reductions in supermarkets. Despite this localized relief in food prices, officials emphasize that no room for complacency exists as winter approaches, with rising energy costs remaining a significant threat to household purchasing power and broader economic competitiveness.