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Progress in reducing inflation has been slower than expected, partly because of the effects of price liberalisation in the services sector.

The Organisation for Economic Co-operation and Development points out, in a new report on the Greek economy, that 'inflation expectations remain strong', despite a marked decline in both the public sector borrowing requirement and the current account deficit.

The trade balance with the UK increased from a L238bn surplus to L1,453bn. GREECE'S year-on-year inflation rate dropped to 14.6 per cent last month, from 15.7 per cent in July, raising hopes that the government's target of 12 per cent by December can be achieved.

Although the inflation rate has gradually declined from a peak of 16.4 per cent in March, it is still more than four times the European Community average.

Istat, the national statistics institute, said Italy recorded a half-year overall surplus of L8,611bn (Pounds 3.6bn), against a L13,647bn deficit for the 1992 first half.

The rise is reflected in an improved performance in all product sectors.

THE INCREASED competitiveness of Italian exports, as a result of last September's lira devaluation, has been confirmed by statistics just published on trade for the first six months of 1993.

In this period, Italy's total exports rose 19 per cent.

Nearby Italian other UN troops were reported as having been prevented from helping them by burning barricades and mobs.

Mr Kravchuk stressed that details of both the sale of the fleet and the transfer of the warheads had to be worked out by joint commissions.

Mr Yeltsin said after the meeting that the cost of the fleet would be set against an estimated Dollars 2.5bn (Pounds 1.65bn) which Kiev owes to Moscow for oil and gas supplies.

Under the country's World Bank-financed programme most of the telephone systems in the longer term are to come from three suppliers, of whom two, Alcatel of France and AT&T, the US group, have already been chosen.

Siemens of Germany and Northern Telecom, the Canadian company, are competing to become the third supplier.

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