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imageATHENS: Greek consumer prices fell 0.3 percent in August, with the annual pace of deflation slowing from a 0.7 percent drop in July, data from the country's statistics service showed on Wednesday.

August' s reading was the slowest deflation rate since March 2013.

Greece's EU-harmonised deflation rate also decelerated to -0.2 percent in August from -0.8 percent in July, coming in above a -0.6 percent rate expected by economists in a Reuters poll.

For years an inflation outlier in the euro zone, Greece has been in deflation mode for the last 18 months as cuts in wages and pensions as well as a severe recession that is bottoming out this year exert downward pressures.

Deflation in Greece hit its fastest pace in November 2013, with consumer prices registering a 2.9 percent year-on-year decline.

Euro zone inflation fell to just 0.3 percent in August, well below the ECB's target of just under 2 percent and what it terms the "danger zone" of 1 percent.

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