ATHENS: A drop in Greek consumer prices accelerated in May, official data showed on Tuesday, as the European Central Bank battled to prevent deflation from gripping the eurozone.

Prices in May fell 2.0 per cent from the level a year ago, a steeper drop than in April and March, when the slide was registered at 1.3pc.

On a monthly basis, the decline stood at 0.8pc. The sharpest drop was recorded for clothing, at 8.9pc, while a 1.0pc drop was seen for food and non-alcoholic drinks.

The European Central Bank rolled out on Thursday an unprecedented package of measures, including negative interest rates, in its fight to head off the spectre of deflation, and a vicious cycle of falling prices and activity, in the euro area.

Published in Dawn, June 11th, 2014