BUSINESS

Inflation ends year at 1.5 pct in spite of recession

Greek inflation confirmed its strong resistance to the recession last year, as the consumer price index grew by 1.5 percent throughout 2012, the fifth consecutive year of gross domestic product contraction.

Hellenic Statistical Authority (ELSTAT) figures showed on Thursday that the yearly price inflation in December amounted to 0.8 percent, the lowest of the year, but that did little to reduce the general rate for the whole of last year.

The price index was severely affected by the hike in fuel and electricity rates.

The fact that inflation has remained at high levels disproportionate to the decline in salaries and pensions is attributed to the impact of the increase in a series of indirect taxes on services and products, the continued presence of various market distortions and the country’s major dependence on imports of both raw materials and finished goods, despite their relative decrease.

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