What effect will a strong euro have on Greek inflation?
Greek inflation among the highest in Europe will probably benefit from a strong euro, with lower import prices and prospects of a positive secondary effect. A stronger euro will dampen inflation throughout Europe through lower prices of imported goods. Greece is among the more sensitive euro zone members when it comes to eurodollar fluctuations due to its high level of oil and other imports. The direction of the euro will play a very important role in whether the inflation rate in Greece will rise, remain stable at around 3.3% to 3.9% or achieve the ambitious target inflation rate of 2.5% to 2.6%.
