ECONOMY

March sees deflation persist for a 12th month in a row

march-sees-deflation-persist-for-a-12th-month-in-a-row

Greece’s annual headline consumer price inflation stayed negative for the 12th month in a row in March, data from the country’s statistics service ELSTAT showed on Friday. The reading was -1.6% year-on-year from -1.3% in February. The data also showed EU-harmonized inflation at -2% from -1.9% in the previous month.

Prices were led lower by apparel, footwear, transport and consumer durables, affected by a second lockdown the country imposed to stem a surge in Covid-19 infections. Greece went through a deflationary phase during its debt crisis as wage and pension cuts and a lengthy recession took a heavy toll on household incomes.

Negative inflation peaked in November 2013, when consumer prices registered a 2.9% year-on-year decline. The economy had emerged from deflation in June 2016 but it reappeared 12 months ago. [Reuters]