UPDATE: Greek July CPI +0.6% On Year Vs +0.5% In June

ATHENS -- Greek consumer prices rose 0.6% on the year in July, up slightly from a 0.5% rate in June, the National Statistics Service said Thursday.

On the month, consumer prices fell 0.7% in July, compared with a 0.1% on-the-month rise in June.

The yearly increase in July came primarily from higher prices in the heavily weighted category of food and non-alcoholic beverages, which rose 3% on the year. This was followed by a 6.3% rise in prices for alcoholic beverages and tobacco, and a 2.9% rise in clothing and footwear prices.

However, these increases were offset by a sharp drop in fuel-senstive transportation prices, down 5.8% on year. Likewise, in the housing category, prices fell 4.8%, reflecting lower household energy prices. Telecommunications prices fell 0.7%, reflecting the continued drop in the cost of fixed-line telephony services.

The inflation rate, measured on a 12-month running average from August 2008 to July 2009, was 2.1% on the year.

For 2009, the Greek government has forecast that inflation will slow to 3.0% from a rate of 4.2% in 2008.