Greek deflation accelerates in May

Greek consumer prices fell 2 percent in May, with the annual pace of deflation accelerating from a 1.3 percent fall in prices the previous month, data from the country’s statistics service showed on Tuesday.

The figure was above a forecast of -1.9 percent by economists in a Reuters poll. The EU-harmonized deflation rate slowed down to -2.1 percent in May from -1.6 percent in April, below a -2.2 percent rate expected by economists.

In November, deflation in Greece hit its highest level since monthly records began in 1960, registering a 2.9 percent year-on-year decline.

Eurozone inflation fell to 0.5 percent in May, still within the danger zone of under 1 percent, which keeps pressure on the European Central Bank to take action to stop the threat of deflation. [Reuters]