BUSINESS

Deflation persists for a 42nd month

TAGS: Economy

Greece’s headline consumer price index fell 0.9 percent year-on-year in August, with the annual pace of deflation picking up from -1.0 percent in July, statistics service data showed on Friday.

This was the 42nd consecutive month of CPI decline. Consumer prices were led higher by alcoholic beverages, tobacco, durable goods, transportation, hotels and restaurants.

The EU-harmonized inflation rate stayed positive for the third month in a row. The reading in August was 0.4 percent, up from 0.2 percent in July.

For years an inflation outlier in the eurozone, Greece has been in a protracted deflation mode since March 2013 based on its headline index, as wage and pension cuts and a multi-year recession took a heavy toll on Greek household incomes.

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

The eurozone saw a modest uptick in inflation in July as consumer prices rose 0.2 percent year-on-year, led higher by food prices.

[Reuters]

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