Greece: Inflation moderates for second consecutive month
December 8, 2010
In November, consumer prices rose 0.2% over the previous month, mirroring the increase seen in October. The moderate reading mainly reflected lower prices for hotels, cafes and restaurants (-0.2% month on month), which partially offset higher prices for food and non-alcoholic beverages (+0.2% mom) as well as for housing (+0.5% mom). Owing to the subdued price increase, annual inflation fell from 5.2% in October to 4.9% in November, which marked the second consecutive month inflation had fallen. Meanwhile, annual average harmonised inflation (based on HICP) rose from 4.3% in October to 4.5% in November. The government expects inflation to average 4.6% this year before slowing to 2.2% in 2011. Meanwhile, the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF) expect 2010 inflation to end the year at 4.8%. In 2011, they anticipate inflation to moderate sharply to 1.5% - 2.0% amid subdued economic activity and high unemployment.