BUSINESS

Greek deflation slows in October

TAGS: Economy

Greece’s headline consumer price index fell by 0.5 percent year-on-year last month, with the annual pace of deflation slowing from -1.0 percent in September, Hellenic Statistical Authority data showed on Thursday.

This is the 44th consecutive month of deflation for the Greek economy.

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, which signed up to its first international bailout in 2010, hit its highest level in November 2013, when consumer prices registered a 2.9 percent year-on-year decline.

The data also showed the annual EU-harmonized inflation rate turned positive after a negative reading in the previous month.

The reading in October rose to 0.6 percent from -0.1 percent in September.

Consumer prices were led higher by transportation costs, alcoholic beverages, tobacco and telecoms.

Inflation in the 19 countries sharing the euro rose to 0.5 percent year-on-year in October, picking up from 0.4 percent in September as the impact of weaker energy prices diminished.

[Reuters]

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