European Inflation Numbers Create Worry Over Deflation

“Is Europe heading towards deflation?

That’s been a hot topic of conversation lately and fresh numbers just out from Eurostat should add to the concern.

Check out the trends of both CPI and core CPI (excluding food, energy, alcohol, and tobacco). The inflation numbers are a steady march downward. Core is actually at its lowest reading yet.

The big fear in Europe used to be that the economy would collapse.

Now the big fear is that Europe is going to become Japan, an economic bloc mired in deflation and horrible growth….”

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