The Eurozone is now in deflation

[Democratic Hawk]

Deflation has arrived in Germany: Inflation rate falls to -0.5 per cent in January

http://www.cityam.com/208256/deflation-has-arrived-germany-inflation-rate-falls-03-cent-january?utm_source=dlvr.it&utm_medium=twitter


Germany has slipped into deflation for the first time since the global financial crisis, supporting the European Central bank's recent decision to unleash its biggest "bazooka" on the ailing Eurozone.

Consumer prices fell -0.5 per cent on an annual basis in January, according to flash estimates from Germany's statistics office. This meant they had fallen to the lowest level since July 2009.

This shows that, despite its sunnier outlook, even the Eurozone's "star economy" is enable to inoculate itself against the spectre of prolong deflation which is currently haunting the single-currency bloc.