December 9, 2013 / 10:10 AM / 6 years ago

Greek deflation hits record in November, at -2.9 percent

A Greek flag flutters atop the Greek Parliament as a full moon rises in central Athens November 18, 2013. Picture taken November 18. REUTERS/Yannis Behrakis

ATHENS (Reuters) - Greece posted in November its highest deflation since monthly records began in 1960, as consumer prices fell 2.9 percent on an annual basis, data from the statistics service showed on Monday.

The EU-harmonised deflation accelerated to -2.9 percent from -1.9 percent in October. The November reading was below a forecast of -1.7 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 rose to 0.9 percent from 0.7 percent in October.

Reporting by Renee Maltezou

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