You don’t have to be a macroeconomist to understand why inflation has virtually disappeared in Greece.
The official inflation rate fell to 0.2 percent in January, while the EU-harmonized consumer inflation rate was 0.0 percent.
And that’s because unemployment has climbed to an all-time record of 27 percent.
Which, coupled with cuts in public sector pay and pensions, means that households’ real disposable income over the past three years has shrunk by almost a third.
Is it any wonder, then, that inflation is nonexistent in Greece?