ATHENS, Feb 15 (Reuters) - Greek inflation evaporated in

January, hitting its lowest level since data began in 1996, the

national statistics service (ELSTAT) said on Friday, as the

country's economic downturn sapped consumer price pressures.

The EU-harmonised consumer inflation rate (HCPI) was 0.0

percent year-on-year in January, ELSTAT said, below a 0.2

percent forecast in a Reuters poll of economists.

'The disinflation process continues as the pass-through from

wage adjustments is strengthening and domestic demand remains

under pressure,' said Eurobank economist Platon Monokroussos.

'I would not exclude negative CPI inflation readings in the

following months, although recent electricity price increases

may temporarily constrain the adjustment in consumer prices,' he

said.

Five years of austerity-driven recession have brought Greek

price rises to a halt after a debt-fuelled boom since the

country joined the euro in 2001 led inflation to accelerate at

almost twice the average euro-area pace.

Cuts in public sector pay and pensions have contributed to

an internal devaluation process aimed at making the 195 billion

euro economy more competitive.

In 2012, Greece's HCPI rate dropped below the euro zone

average for the first time since Athens joined the euro. The

government and the EU expect Greece to be in deflation territory

this year with the HCPI rate dropping to -0.8 percent.

Greece's economy is expected to shrink again this year, by

4.5 percent, bringing total GDP contraction since the recession

began to almost a quarter. Households' real disposable income

over the past three years has shrunk by almost a third.

Unemployment has climbed to an all-time record of 27

percent, the highest in the 17-nation euro zone, also dampening

price pressures.

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KEY FIGURES JAN DEC NOV OCT

EU-harmonised +0.0 +0.3 +0.4 +0.9

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source: ELSTAT

(Reporting by George Georgiopoulos and Harry Papachristou;

Editing by Hugh Lawson)

Keywords: GREECE INFLATION/

(george.georgiopoulos@thomsonreuters.com)(+30210 337 6437)(Reuters Messaging: george.georgiopoulos.thomsonreuters.com@reuters.net)

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