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http://www.businessinsider.com/europes-chief-economist-says-deflation-is-coming-2014-12
After months underplaying the risks of deflation, it looks like the European Central Bank (ECB) is now finally resigned to it.
Chief economist Peter Praet admitted in an interview released this morning that inflation figures will spend a large part of 2015 in negative territory, and offered some of the biggest hints so far on what Europe's QE programme is going to look like.
Praet was interviewed by German financial newspaper Boersen Zeitung, and there's a Bloomberg translation of his comments here.
Spain's inflation figures, released yesterday, show the major effect that tumbling oil prices are likely to have. Prices dropped 1.1% in the year to December, the fastest drop in five years, and far faster than analysts expected.
Eurozone inflation was last at 2% at the beginning of 2013, and has been steadily dropping ever since. It's been below 1% for all of 2014, and a dip into deflation is now all but guaranteed in the new year. Here's that plunge:
Read more: http://www.businessinsider.com/europes-chief-economist-says-deflation-is-coming-2014-12#ixzz3NTi0FhZt
After months underplaying the risks of deflation, it looks like the European Central Bank (ECB) is now finally resigned to it.
Chief economist Peter Praet admitted in an interview released this morning that inflation figures will spend a large part of 2015 in negative territory, and offered some of the biggest hints so far on what Europe's QE programme is going to look like.
Praet was interviewed by German financial newspaper Boersen Zeitung, and there's a Bloomberg translation of his comments here.
Spain's inflation figures, released yesterday, show the major effect that tumbling oil prices are likely to have. Prices dropped 1.1% in the year to December, the fastest drop in five years, and far faster than analysts expected.
Eurozone inflation was last at 2% at the beginning of 2013, and has been steadily dropping ever since. It's been below 1% for all of 2014, and a dip into deflation is now all but guaranteed in the new year. Here's that plunge:
Read more: http://www.businessinsider.com/europes-chief-economist-says-deflation-is-coming-2014-12#ixzz3NTi0FhZt
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