1.2. The effect of high energy prices on inflation in Greece and the Euro area

prices on inflation in Greece and More specifically, the annual increase of the General the Euro area CPI in September 2022 by 12.0% is a combined re- sult of the following changes in the price indices of sub-groups of goods and services. [...] Evolution of energy product prices as for electricity, the index showed a steep annual percentage increase of 80% from March to May, while Considering the above changes, it is also interesting to the increase in August reduced to 38.5% compared examine the fluctuations of prices of the energy prod- to the corresponding Eurozone average 39.9%. [...] In this case too, the As is known, the large share of natural gas in the reduction in price could contribute to the reduction of electricity generation mix of our country (about 40%) the cost of electricity generation in Greece. [...] mid-2021, initially due to the restart of economic activi- 1.2.6 presents the evolution of monthly average spot ty after the pandemic, while in 2022, this upward trend prices of the Day-Ahead Market in the Hellenic Energy was further aggravated due to the consequences of Exchange (HEnEx S. [...] European Commission initiatives to tackle year, the REPowerEU plan,8 concerning the transfor- the energy crisis mation of Europe’s energy system and targeting both the gradual ending of the EU’s dependence on Rus- Aiming at mitigating the effects of the continuous rise in sian fossil fuels and tackling the climate crisis.