TABLE-Greek October consumer prices mark biggest deflation in 50 yrs

ATHENS Fri Nov 8, 2013 5:15am EST

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ATHENS Nov 8 (Reuters) - Greece posted its biggest deflation since 1962 on Friday, as consumer prices fell 2.0 percent on an annual basis, data from the statistics service showed on Friday.

The EU-harmonised inflation reading fell 1.9 percent from 1.0 percent in September. The October reading was below a forecast of -1.5 percent.

A combination of deep recession, wage cuts and substantial spare capacity in the economy have pulled prices down, prompting internal devaluation that could render the Greek economy more competitive.

Price dynamics are seen keeping Greece's inflation rate below the euro zone's average in the medium term, according to the International Monetary Fund.

Inflation in the 17 countries sharing the euro fell faster than expected to 0.7 percent in October from 1.1 percent in September, hitting a four-year low. **********************************************************

KEY FIGURES OCT SEPT AUGUST JULY JUNE

CPI y/y -2.0 -1.1 -1.3 -0.7 -0.4

EU-harmonised -1.9 -1.0 -1.0 -0.5 -0.3

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Comments (1)
MichaelI wrote:
If the average Greek has lost 40% of his wealth and had 30% cuts in his salary/pension, then 2% deflation is peanuts!

The deflation should have been over 20% by now to counter-balance the poverty inflicted on the weak.

The rich however enjoy tax-free savings in Switzerland and elsewhere without any cut in their income.

Talk about equality in the 21st century…

Nov 08, 2013 10:19pm EST  --  Report as abuse
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