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G&T Team
ResearchResearch Reports Weekly Market Watch

Weekly Market Watch

Inflation was 13.9% y/y and 0.3% m/m in December 2021 
Annual CPI inflation came in at 13.9% in December 2021, after a 12.5% inflation in previous month, according to Geostat. The additional rise in inflation from November to December is explained by last year’s low base (in December 2020 annual inflation reduced due to government’s utility subsidies). Core inflation (non-food, non-energy) was 5.9% and core inflation excluding tobacco was 6.0% in December. By categories, annual inflation was mainly driven by price changes in food and non-alcoholic beverages (+15.6% y/y, +5.01ppts), housing, water, electricity, gas and other fuels (+43.5% y/y due to Dec-20 low base, +3.64ppts), transport (+17.3% y/y, +2.24ppts), restaurants and hotels (+14.0% y/y, +0.78ppts), health (+7.9% y/y, +0.62ppts) and furnishings, household equipment and maintenance (+11.8% y/y, +0.61ppts) categories. On a monthly basis, there was a 0.3% inflation in December 2021, reflecting price increase in food and non-alcoholic beverages (+0.8% y/y, +0.27ppts) category. Overall, annual average inflation was 9.6% in 2021, up from 5.2% in 2020.

International reserves at US$ 4.3bn in December 2021 
Gross international reserves increased by 9.2% y/y to US$ 4.3bn in December 2021 according to NBG. On a monthly basis, the reserves were up by 8.7% (+US$ 343.7mn). Changes in reserves were attributed to the government and banking sector FX operations, and/or asset revaluation.