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Greek price drop offers help to households

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Greek price drop offers help to households
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Consumer prices have fallen in Greece for the second month in a row.

The country is entering deflation for the first time since 1968. Economists say lower consumer prices will help boost households’ purchasing power, mitigating cuts in wages, even though falling prices could delay consumer spending if people expect prices to fall further. Greek politicians have been complaining for some time prices remained high despite six years of recession.

Consumer prices in Greece rose by a cumulative 46 percent between 2001 and 2011, compared with 29 percent in the euro area as a whole.