ECONOMY

March producer price drop points to lower inflation

Greek producer prices fell 7.3 percent year-on-year in March, pushed lower by a slump in oil costs, according to the National Statistics Service (NSS). The latest reading brought the 12-month average annual pace of producer price inflation to 4.9 percent from 6.5 percent in February. »Producer prices continued to fall in March. This drop in producer prices will be translated into lower consumer price inflation, which is good news for consumers,» IHS Global Insight economist Diego Iscaro told Reuters. «A weaker inflation rate will help limit the downside risks to consumption, although we believe that it will not be enough to prevent a sharp moderation in private consumption.» Separately, the NSS also said retail sales by volume fell 13.7 percent year-on-year in February after a 10.8 percent drop in January.