Prices kept shrinking in November, led by fuel costs

Deflation persisted in the Greek economy in November for a 21st month, mainly due to the impact of the lower taxation on heating oil consumption and the global decline in fuel prices.

Hellenic Statistical Authority (ELSTAT) figures showed on Tuesday that the general consumer price index contracted 1.2 percent last month compared with November 2013. This was attributed mostly to the 5.3 percent drop in the “housing” price index, due to the drop in rental rates, heating oil prices and natural gas rates. Part of that was offset by the electricity rate increase, which came to 4.9 percent.

The drop in the price of meat, fresh fruit, potatoes, fresh milk, fish, cereal and sugar resulted in a 0.4 percent decline in the “food” index, in spite of the 15.1 percent hike in that of fresh vegetables and the 2.9 percent rise in that of olive olive oil.

There was also a 3.1 percent drop in education prices, while alcoholic drinks and tobacco saw a 3 percent price increase.