Anxiety rises over eurozone’s falling prices, but Draghi’s hands may be tied
From theguardian.com
Prices are tumbling, right across the eurozone. But for consumers from Amsterdam to Athens, this is not a bumper Christmas sell-off: the falling cost of their weekly shop reflects a deep economic malaise. After Brussels statisticians announced last week that inflation had been negative in December, with prices falling at an annual rate of 0.2%, experts warned that without drastic action the eurozone may be sliding towards a Japanese-style deflationary slump. “This move in December is significant,” said Janet Henry, European economist at HSBC, “because it’s the first time that inflation has been negative since 2009 – ...
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