ECONOMY

Annual deflation of 1 percent in August for Greece

Consumer prices continued to drop in August as the country experienced deflation of 1 percent last month compared to July, according to figures released on Monday by Eurostat.

The latest drop in prices comes after a 0.5 percent decline in July. August’s deflation figure was the highest in the eurozone.

Eurostat said consumer prices in the euro zone edged up by 0.1 percent on the month in August, following a 0.5 percent drop in July. Annual consumer price inflation fell to 1.3 percent from 1.6 percent in July.

Inflation remains well below the European Central Bank’s target of close but below 2 percent, warranting the bank’s pledge to keep interest rates at current levels or lower for an extended period of time to help the recovery.

ECB President Mario Draghi said on Monday that the euro zone’s economy, which ended its recession in the second quarter, remained “fragile” and unemployment was “still far too high”.

[Kathimerini & Reuters]