(Updating with comments of senior international economist on May CPI figure)
ATHENS (Thomson Financial) - Greek CPI for May was up 4.9 percent year-on-year, from 4.4 percent recorded in April, the National Statistical Service (NSS) said.
The results were above even the top end of expectations. Last week a Thomson Financial News poll of leading local economists predicted that the rate would come in between 4.5 percent to 4.8 percent.
In the year to May, CPI was up 3.6 percent, compared to 2.9 percent a year earlier.
NSS also noted that the European harmonized index of consumer prices (HICP) was up 4.9 percent in May compared to 2.6 percent a year earlier.
For the 12 months of June 2007 to May 2008, HICP was up 3.7 pct compared to 3.1 percent a year earlier, it added.
Senior international economist Diego Iscaro of Global Insight Ltd. said: 'Although we were expecting an increase in inflation, the May figures were certainly higher than we had predicted. Nevertheless, the story continues to be the same: prices are being pushed up by elevated energy and food prices'.
Iscaro explained: 'The fact that domestic demand is stronger in Greece than in much of the other eurozone countries, combined with the high weighting of oil products in the basket of consumer goods, means that consumer prices are rising faster in Greece than in other economies in the area'.
The senior economist added: 'Higher prices are not only having an impact on private consumption, but they are also denting the external competitiveness of Greek exports, at a time in which the strength of the euro and weaker activity in the eurozone are already weighing down on exports'. nick.skrekas@thomsonreuters.com ns/cmr COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.