Falling food prices in Spain hit Q2 sales at Dia
date:Jul 29, 2014
Spain's discount supermarket group Dia squeezed costs in its second quarter to cope with aggressive price-cutting and low inflation in its home market and neighbouring Portugal, which together generate two-thirds of sales.

Low inflation in the euro zone has led some economists to warn of the possibility of Japanese-style deflation where falling prices and wages lead consumers to curb spending, forcing retailers into a vicious circle of price cutting.

Dia said sales in like-for-like terms, excl
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