Greece is the cradle of Western civilization and bad economic news. Inflation no longer exists in Greece as it moves into a deflationary spiral.
This article discusses how wage adjustments are bringing down inflation, but that is really not the case. Wage and pension cuts are a relatively small percentage of the sapped purchasing power of the Greek consumer. What is really driving deflationary “wage adjustments” is the fact that at least 27% of the country is earning no wages at all, because they do not have jobs.
According to economists, Greek GDP will only shrink by 4.5% this year. Unfortunately, I think this figure is too optimistic. PMI numbers are still in line with last year’s 6.5% drop. By the way, if the Greek economy shrinks this much, the resulting tax revenue shortfall ensures that Greece will require more bailout money in the summer right before German elections.