Greek March inflation rises to 3.9% y/y

Greece's headline consumer price

inflation accelerated to a 3.9 percent annual pace in March on

higher fuel prices and increased VAT tax, the country's

statistics service said on Friday.

Consumer inflation rose 3.1 percent month-on-month. In the

same month a year earlier the annual rate of inflation was 1.3

percent.

Euro zone inflation picked up to 1.5 percent year-on-year in

March, the highest pace since Dec 2008.

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KEY FIGURES MARCH FEB JAN DEC

CPI y/y +3.9 +2.8 +2.4 +2.6

EU-harmonised +3.9 +2.9 +2.3 +2.6

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source: NSS

ECONOMIST COMMENT

NICK MAGGINAS, National Bank

"Higher oil prices and the effect from increased consumption

tax on fuel and alcoholic beverages are the main reasons for the

inflation increase, adding about 2.3 percentage points to the

annual rate of the CPI."

"Given that the effect from higher VAT rates from the

beginning of the month is likely to increase over the coming

months, we expect inflation to exceed 4 percent and subside to

lower levels after July."

MARCH BREAKDOWN Y/Y change M/M change

Food, non-alcoholic beverages -1.6 +0.1

Alcoholic drinks, tobacco +4.9 +0.2

Clothing, footwear +1.2 +22.0

Housing +7.0 +1.6

Durable household goods +1.0 +5.5

Medical care +2.7 +0.2

Transport +15.5 +4.1

Communications +3.5 +1.7

Entertainment +0.7 +0.1

Education +3.0 0.0

Hotels +2.9 +0.7

Miscellaneous goods, services +4.9 +2.7

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source: NSS