All key measures of eurozone inflation fell dramatically in October, stunning the markets and leaving the region dangerously close to a Japan-style deflation trap.Read the rest here.
Consumer price inflation (CPI) plunged from 1.1pc to 0.7pc, the lowest since the financial crash in 2008-2009. “This is a massive downward surprise,” said Gizem Kara from BNP Paribas.
A string of debt-crippled states are now sliding into deflation, with Italy buckling over the late summer. The underlying rate is even lower once austerity-linked tax rises are stripped out
The shock data came as EMU-wide unemployment jumped to a record 12.2pc in September, with a further 74,000 people losing their jobs. Youth jobless rates reached 40.2pc in Italy, 57.6pc in Greece and 56.6pc in Spain.
Thursday, October 31, 2013
Signs of Deflationary Depression Increase in Europe
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1 comment:
Ah well, so much for the beloved union of the state with the Christian Democrats and Socialists! Guess that arrangement with the state didn't work so well either.
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