Deflating Europe?

According to Austrian central banker and ECB council member Nowotny the ECB will clearly miss its inflation target. His latest speech in Warsaw raises concerns that the Eurozone is drifting towards deflation – a monetary deadlock very difficult to escape from. Currently inflation rates have for the second time within a year fallen below zero, for what might soon be referred to as official deflation.

Euro area inflation data
Euro area inflation data- HICP – Overall index, Annual rate of change, Eurostat, Neither seasonally nor working day adjusted. percentage changes.

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