Inflation and international price competitiveness Average inflation in 2007 fell to 3.0%, mainly as a result of oil price developments, which were later reversed, as well as a slowing of the annual increase in processed food prices (until September). However, inflation picked up significantly in the last quarter of 2007 and the first quarter of 2008, reaching 4.4% in March of this year.
It is expected that inflation will remain at high levels in the coming months, mainly because of the sharp increase in imported inflation, but will gradually decline thereafter. According to Bank of Greece projections compiled at the beginning of the year and published in February, average annual inflation in 2008 was expected to be 3.4%.