I don’t know if deflation in the debt-ridden country keeps pace with the speed of the famous train bringing success and development in Greece. Fact is that deflation, that is the decrease in the general price level of goods and services, accelerates in high speed. According to Greek Statistics Authority (ELSTAT), The consumer price index recorded a decrease of 2% in May 2014 with the annual pace of deflation accelerating from a 1.3 percent fall in prices the previous month.
picture via @YiannisMouzakis
May is the 15th consecutive month of deflation.
Deflation increases the real value of money and allow consumers to buy more goods and services for the same amount of money but it is also a sign of poor economic growth and it increases the real value of debt.
According to ELSTAT comparing May 2014 (-2%), May 2013 (-0.4%) and April 2014 (-1.3%) two are the most characteristics figures of price increases in basic needs like Health and Milk:
a) an increase of 2.1% in the sector “Health” due to increase of consumers’ participation in the prescription drugs.
b) an increase of 2% in the price of milk despite the implementation of OECD-reforms.
In general there are price decreases in some fresh food products but they were offset due to price increases in some other fresh and dairy products. Also prices in “clothing and shoes” have recorded a decrease due to winter- and spring-sales. Rents have gone down as well, but prices in fuel, air-tickets, hotels, restaurant and bars.
Price increases were also recorded in postal services and electricity.
PS Excuse me, did you say anything?