ECONOMY

Producer prices fall 11 pct in July

A worker is pictured at a cotton processing plant in a file photo. Data released yesterday showed that Greek producer prices fell 11 percent year-on-year in July, pushed lower by a sharp drop in energy costs compared to the same period last year. ‘This is an expected development, given the base effects from the very big increases in oil prices and other raw materials in the first seven months of 2008,’ economist Dimitris Maroulis at Alpha Bank told Reuters. ‘These base effects create lower prices, especially in combination with the significant decline in demand, both in Greece and abroad. For the full year, we see the average rate of producer price inflation in negative territory, at about -5.5 percent.’