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Fri 07 Jul 2009Rate of deflation deepens to 5.4% as retailers cut prices

PRICES FELL again in June, deepening Ireland’s annual rate of deflation to 5.4 per cent, as retailers slashed prices in a bid to persuade consumers to spend.

New figures from the Central Statistics Office also show that price falls in Ireland are racing ahead of average deflation in the euro zone, as the economy weakens at an unprecedented pace. The EU harmonised index of consumer prices, which excludes mortgage interest, fell to an annual rate of -2.2 per cent, compared to a European average of just -0.1 per cent.

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