Greece slips back into deflation

Listen to this article

00:00
00:00

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

Copyright The Financial Times Limited 2017. All rights reserved. You may share using our article tools. Please don't copy articles from FT.com and redistribute by email or post to the web.