Greek deflation picks up in June, prices fall for 28th month

Greek consumer prices fell by 2.2 per cent year-on-year in June, with the annual pace of deflation accelerating from the previous month, data from the country's statistics service showed on Thursday. 

PHOTO: BLOOMBERG

JUL 9, 20155:33 PM

[ATHENS] Greek consumer prices fell by 2.2 per cent year-on-year in June, with the annual pace of deflation accelerating from the previous month, data from the country's statistics service showed on Thursday.

Greece's EU-harmonised deflation rate slowed, showing prices fell by 1.1 per cent in June from a 1.4 per cent decline in May. Analysts polled by Reuters were projecting a decline of 1.6 per cent.

Greek consumer prices fell by an average 1.3 per cent in 2014 compared to a year earlier.

For years an inflation outlier in the euro zone, Greece has been in deflation mode for the last 28 months as cuts in wages and pensions and a deep recession exerted downward pressures.

Deflation in Greece hit its highest level in November 2013, when consumer prices registered a 2.9 per cent year-on-year decline.

The eurozone returned to inflation in May after five months of falls and stagnation, as more expensive food, tobacco and services outweighed the impact of lower energy prices.

Consumer prices in the 19 countries sharing the euro rose by 0.3 per cent year-on-year in May, according to EU statistics office Eurostat.

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