TABLE-Greek October consumer prices mark biggest deflation in 50 yrs

ATHENS Fri Nov 8, 2013 5:15am EST

Nov 8 (Reuters) - Greece posted its biggest deflation since 1962 on Friday, as consumer prices fell 2.0 percent on an annual basis, data from the statistics service showed on Friday.

The EU-harmonised inflation reading fell 1.9 percent from 1.0 percent in September. The October reading was below a forecast of -1.5 percent.

A combination of deep recession, wage cuts and substantial spare capacity in the economy have pulled prices down, prompting internal devaluation that could render the Greek economy more competitive.

Price dynamics are seen keeping Greece's inflation rate below the euro zone's average in the medium term, according to the International Monetary Fund.

Inflation in the 17 countries sharing the euro fell faster than expected to 0.7 percent in October from 1.1 percent in September, hitting a four-year low. **********************************************************

KEY FIGURES OCT SEPT AUGUST JULY JUNE

CPI y/y -2.0 -1.1 -1.3 -0.7 -0.4

EU-harmonised -1.9 -1.0 -1.0 -0.5 -0.3