After a brief flirtation with positive inflation n February, Greece has defied economists’ forecasts and slumped back into deflation.
Consumer prices contracted 0.7 per cent year-on-year in March on an EU harmonised basis, a stark contrast to the 0.2 per cent rise forecast by economists, and the 0.1 per cent rise seen in February.
Using Greek measures, consumer prices contracted 1.5 per cent year-on-year in March, the worst contraction since September. By this measure, Greece slipped into deflation in early 2013, and has been firmly stuck there ever since.
Charts courtesy of Bloomberg