The cap on rents that is to be introduced in the near future aims to protect renters in “overstretched housing markets” against sharp rent increases. This regulation could likewise have undesirable adverse side effects in the long term by resulting in reducing housing construction, particularly in big cities. What is more, Greece is once again keeping the rest of the euro area on tenterhooks.
In June headline inflation rose to 8.6%, another record high, continuing to reflect surging energy and food prices, owing in part to Russia’s unjustified invasion of Ukraine. But price increases have not been limited to energy and food. In recent months we have seen inflationary pressures broaden and intensify across many goods and services.