Deflation persists for 25th month in a row

Greek consumer prices fell 2.1 percent year-on-year in March, with the annual pace of deflation slowing from a 2.2 percent decline in February, data from the country’s statistics service showed on Thursday.

Greece’s EU-harmonized deflation rate was steady compared to February, showing prices fell by 1.9 percent in March. Greek consumer prices fell by an average 1.3 percent in 2014 compared to a year earlier.

For years an inflation outlier in the eurozone, Greece has been in deflation mode for the last 25 months as cuts in wages and pensions and a deep recession exerted downward pressures.

Deflation in Greece hit its highest level in November 2013, with consumer prices registering a 2.9 percent year-on-year decline.

On an annual basis, consumer prices in the 19 countries sharing the euro fell 0.1 percent year-on-year in March.

The bottoming out of price declines is likely to be welcome news for the European Central Bank, which wants to keep inflation below but close to 2 percent over the medium term.

It started printing money in March to inject more cash into the economy and ward off concerns of persistently falling prices, or deflation.


Subscribe to our Newsletters

Enter your information below to receive our weekly newsletters with the latest insights, opinion pieces and current events straight to your inbox.

By signing up you are agreeing to our Terms of Service and Privacy Policy.