Investing.com - Greek consumer prices fell at the fastest annual rate since records began in November, a report on Monday showed, as record unemployment levels and harsh government austerity measures hit demand.
The annual rate of consumer price inflation contracted by 2.9% in November, statistics service ELSTAT said, slowing sharply after a drop of 2% in the previous month. Economists had expected the annual rate of inflation to decline by 1.8%.
In contrast, the annual rate of inflation in the euro zone accelerated to 0.9% in November, recovering from a four year low of 0.7% in October.
The report said clothing and textile prices dropped by more than 11%, while household equipment costs were down 3.7% on a year-over-year basis.
In a separate report, ELSTAT said the Greek economy contracted by 3.0% from a year earlier in the third quarter, unchanged from a preliminary estimate, easing from a downwardly revised contraction of 3.7% in the three months to June.
Last month, the Organization for Economic Co-operation and Development warned that price falls could pose a threat to Greece’s bailout, by acting as a drag on economic growth and resulting in a higher than expected debt-to-GDP ratio.
The Greek parliament approved the budget for 2014 on Saturday and predicted a return to growth next year, following six consecutive years of recession.
Athens and the troika of international lenders, the International Monetary Fund, the euro zone and the European Central Bank, have forecast growth of 0.6% in 2014. However, OECD sees the Greek economy contracting by 0.4% next year.
The annual rate of consumer price inflation contracted by 2.9% in November, statistics service ELSTAT said, slowing sharply after a drop of 2% in the previous month. Economists had expected the annual rate of inflation to decline by 1.8%.
In contrast, the annual rate of inflation in the euro zone accelerated to 0.9% in November, recovering from a four year low of 0.7% in October.
The report said clothing and textile prices dropped by more than 11%, while household equipment costs were down 3.7% on a year-over-year basis.
In a separate report, ELSTAT said the Greek economy contracted by 3.0% from a year earlier in the third quarter, unchanged from a preliminary estimate, easing from a downwardly revised contraction of 3.7% in the three months to June.
Last month, the Organization for Economic Co-operation and Development warned that price falls could pose a threat to Greece’s bailout, by acting as a drag on economic growth and resulting in a higher than expected debt-to-GDP ratio.
The Greek parliament approved the budget for 2014 on Saturday and predicted a return to growth next year, following six consecutive years of recession.
Athens and the troika of international lenders, the International Monetary Fund, the euro zone and the European Central Bank, have forecast growth of 0.6% in 2014. However, OECD sees the Greek economy contracting by 0.4% next year.