Greece: Inflation moderates in October
November 9, 2010
In October, consumer prices rose 0.2% over the previous month, which represented a sharp deceleration compared to the 1.9% rise recorded in September. The moderate reading mainly reflected lower prices for food and non-alcoholic beverages (-0.4% month on month) and a less pronounced increase in prices for clothing and footwear (September: +17.6% mom; October: +1.3% mom). Owing to the subdued price increase, annual inflation fell from 5.6% in September to 5.2% in October. Meanwhile, annual average harmonised inflation (based on HICP) rose from 3.9% in September to 4.3% in October. 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, inflation is likely to moderate sharply to 1.5% - 2.0% amid subdued economic activity and high unemployment.