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Fri 06 Jun 2009Deflation at level not seen since 1933
THE ANNUAL rate of deflation rose to 4.7 per cent in May, a level not seen since 1933, new data from the Central Statistics Office (CSO) shows. Prices have been falling since January and the cost of living, as measured by the consumer price index (CPI), declined by a further 0.5 per cent last month.
Until May, the main deflationary force at play has been the reduction in mortgage interest costs. Interest rates have plummeted as a result of a series of rate cuts by the European Central Bank (ECB) since last October.
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