Greece & Inflation

Inflation is known as the measure of increasing consumer prices related to an increase in the volume of money, that results in the loss of the value of currency. We are given the chance to take a look at each country's growth and inflation, under the basis of its CPI and GDP deflator (most well known measures of inflation).

http://www.tradingeconomics.com/Economics/Inflation-CPI.aspx?Symbol=GRD

The above graph shows the average rate of inflation (per month) in Greece from 2008 to 2010. Taking a look at the graph, we can see that in July 2010, inflation hit a high of 5.5% in comparison to July 2009 when it was at a mere 0.6% - ultimately showing us how much inflation can rise or fall in as little as a year.

Greece was once considered a high inflation risk country, but by adopting the euro in 2002 they saw an increase in consumer spending which resulted in a boost in the economic growth.

Inflation Facts about Greece

• Average inflation rate for the last 50 years is 9.7%
• Historical high was in January 1974, at 33.7%
• Record low was in February 1962, at -2.1%
  http://www.tradingeconomics.com/Economics/Inflation-CPI.aspx?Symbol=GRD
  http://www.state.gov/r/pa/ei/bgn/3395.htm