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Greek deflation eases in October, prices drop for 32nd straight month

Published 10/11/2015, 11:12
© Reuters. A woman leaves a shop at the commercial Ermou street in central Athens

ATHENS (Reuters) - Greece's EU-harmonised deflation rate slowed in October as consumer prices fell by 0.1 percent compared to a 0.8 percent drop in September, data from the country's statistics service showed on Tuesday.

The headline consumer price index fell 0.9 percent year-on-year in October, with the annual pace of deflation decelerating from the previous month. It was the 32nd consecutive monthly fall in prices.

Greek consumer prices fell by an average of 1.4 percent in 2014 compared to a year earlier. The Greek government has projected deflation will average 0.5 percent this year, while prices will rise 1.3 percent in 2016.

For years an inflation outlier in the euro zone, Greece has been in deflation mode for the last two and a half years as wage and pension cuts and a protracted recession took a heavy toll on Greek households' income.

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

© Reuters. A woman leaves a shop at the commercial Ermou street in central Athens

Annual inflation in the euro zone turned negative in September due to sharply lower energy prices, maintaining pressure on the European Central Bank to increase its asset purchases to boost prices.

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