Trade deficit down 12.1% y/y in July 2015 
According to GeoStat’s preliminary figures, the trade deficit in July 2015 decreased 12.1% y/y to US$ 475mn as exports fell 24.0% y/y to US$ 187mn, while imports were down 15.8% y/y to US$ 662mn. Detailed statistics will be available on August 21. In 7M15, exports decreased 23.8% y/y to US$ 1.3bn, imports fell 10.6% y/y to US$ 4.3bn, and the trade deficit decreased 3.6% y/y to US$ 3.0bn.
 

Producer price index down 2.3% m/m and up 7.8% y/y in July 2015
PPI for industrial goods decreased 2.3% m/m in July 2015, according to GeoStat. A 2.3% decrease in manufacturing prices contributed -1.93ppts to the overall index change. The prices were down for chemical products (-10.9% m/m), manufacture of food, beverages, and tobacco (-1.8% m/m), and manufacture of basic metals and fabricated metal products (-3.8% m/m).
Annual PPI increased 7.8% in July 2015, with manufacturing prices increasing 10.3% y/y (mostly for foods, beverages and tobacco, paper and publishing, basic metals and fabricated metals, and rubber and plastic products), contributing 8.44ppts to the overall index change. Prices were 4.4% lower y/y in the electricity, gas and water supply category, contributing -0.58ppts to the overall index change.
 

Money transfers down 31.8% y/y in July 2015
Money transfers decreased 31.8% y/y to US$ 93.4mn in July 2015, according to NBG. The 40.5% y/y decline from Russia (46.2% of total) and 76.1% y/y drop from Greece (4.8% of total) were the major contributors to the decline in money transfers. As in previous months, remittances continue strong growth from USA +17.3% y/y (9.1% of total), Turkey +20.9% y/y (6.6% of total), and Israel +52.7% y/y (3.0% of total). In 7M15, money transfers decreased 24.2% y/y to US$ 632.0mn.
 

NBG increases policy rate by 50 basis points to 6.0%
At its meeting on August 12, 2015, NBG’s monetary policy committee increased the policy rate by 50 basis points to 6.0%. The decision to raise the policy rate was guided by increased inflation expectations, as well as domestic and external risks affecting the inflation forecast. NBG cited that annual inflation “may slightly exceed the target level” by the end of 2015, as external and internal demand remains weak. It also reiterated its earlier forecast for a further rate increase to 6.5% by the end of the year.