News

Deflation Deepens in Greece

In November 2009, Greek Prime Minister George Papandreou described his nation's economy as being in "intensive care."

Since then, despite reforms and rescue packages, the nation's economy remains unhealthy.

Deflation has taken over.

Read this June 10, Reuters article titled, "Greek deflation accelerates in May."

Greek consumer prices fell 2 percent in May, with the annual pace of deflation accelerating from a 1.3 percent fall in prices the previous month, data from the country's statistics service showed on Tuesday.

The figure was above a forecast of -1.9 percent by economists in a Reuters poll. The EU-harmonised deflation rate slowed down to -2.1 percent in May from -1.6 percent in April, below a -2.2 percent rate expected by economists.

In November, deflation in Greece hit its highest level since monthly records began in 1960, registering a 2.9 percent year-on-year decline.

Euro zone inflation fell to 0.5 percent in May, still within the danger zone of under 1 percent, which keeps pressure on the European Central Bank to take action to stop the threat of deflation.

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KEY FIGURES MAY APRIL MARCH FEB

CPI y/y -2.0 -1.3 -1.3 -1.1

EU-harmonised -2.1 -1.6 -1.5 -0.9