According to the Hellenic Statistical Authority’s (ELSTAT) data, the Greek Consumer Price Index (CPI) fell by 1.1 percent in February. In addition, the rate of the deflation has decreased compared to last month.
Deflation, which hit its historical low last November (-2.9 percent) seems to be decelerating while ELSTAT’s data records show an appreciation in the price of tobacco (due to taxation), to drugs as well as in some staple foods (milk, olive oil, beef).
The deep economic recession along with the cuts in salaries and the substantial spare capacity, exert downward price pressures which is part of an internal devaluation process that could boost the competitiveness of the Greek economy.
Eurozone’s inflation was stable at 0.8 percent. However, this rate was well below European Central Bank’s (ECB) expectations.