ECONOMY

Sales season and lower fresh produce prices in July prompt a fall in the rate of inflation

The pace of rising consumer prices slowed down to 3.6 percent in July year-on-year, from 3.8 percent in June, the National Statistics Service (NSS) said yesterday. The cost of fresh produce and refreshments stood 7.4 percent higher from a year earlier despite a 3 percent decline from June. The rates of catering services rose 4.5 percent year-on-year. School fees were 4.5 percent higher, healthcare costs 3.6 percent, housing 3.3 percent and transport costs 3.1 percent, year-on-year. The overall 1.9 percent slowdown from June is chiefly attributed to declines of 11.8 percent in the cost of clothing and footwear and of 3.4 percent in the prices of durable and household goods as the summer sales opened. Greece’s EU-harmonized consumer price inflation eased to 3.5 percent year-on-year in July against 3.6 percent in June. Month-on-month the decline was 2.1 percent. Higher oil prices are estimated to push inflation higher in August.