Inflation in Euro Zone Falls as Unemployment Stays Flat

By DAVID JOLLYJAN. 31, 2014
The New York TImes

BRUSSELS — Europe’s labor market remained in the doldrums in December, while the inflation rate ticked back down to the same level that recently led the European Central Bank to cut interest rates, official data showed Friday. The reports suggested that the bank will be under pressure to provide more monetary stimulus to keep a nascent recovery alive.

Slump in euro zone money supply growth highlights deflation risk

FRANKFURT Wed Jan 29, 2014 5:19am EST

(Reuters) - Euro zone money supply growth slowed sharply in December and loans to the private sector contracted further, putting pressure on the European Central Bank to take fresh action to counter the threat of deflation.

With euro zone inflation running well below its target, the ECB forcefully underlined its determination earlier this month to take action should a deflation risk arise or rising money market rates threaten the bloc's fragile recovery.

Data released by the ECB on Wednesday showed that euro zone M3 money supply - a general measure of cash in the economy - grew at an annual pace of 1.0 percent, slowing markedly from 1.5 percent in November.

Deflation is deflation even if you deserve it

BY JAMES SAFT

Thu Jan 9, 2014 5:06pm EST

(Reuters) - Here is some unwelcome news for the likes of Greece, Ireland and Cyprus: Apparently it isn't really deflation if you deserve it.

That's the takeaway from remarks by ECB chief Mario Draghi, who despite persistently falling prices in some euro zone peripheral economies, was at pains on Thursday to define the problem away.

Low Inflation Tests World's Central Banks

Subdued Prices Persist Despite Years of Easy Money; Deflation Still a Threat

By SUDEEP REDDY in Washington, BRIAN BLACKSTONE in Frankfurt and JASON DOUGLAS in London

The Wall Street Journal

Updated Dec. 17, 2013 7:28 p.m. ET

Inflation is slowing across the developed world despite ultralow interest rates and unprecedented money-printing campaigns, posing a dilemma for the Federal Reserve and other major central banks as they plot their next policy moves.

Global shares stabilize after sell-off, euro firm before ECB

BY MARC JONES

LONDON Thu Dec 5, 2013 7:43am EST

(Reuters) - European shares steadied on Thursday after three days of selling, as focus turned to whether the European Central Bank will offer any new economic stimulus after the Bank of England left its interest rates at a record low.

Markets remained under pressure amid speculation about the future of U.S. monetary stimulus. That kept bond yields elevated and left shares struggling to recover from this week's declines.

European shares .FTEU3 were virtually flat before the 1245 GMT ECB rate decision and 1330 GMT news conference, as traders waited to hear what the head of the bank, Mario Draghi, had to say..EU

TABLE-Greek October consumer prices mark biggest deflation in 50 yrs

ATHENS Fri Nov 8, 2013 5:15am EST

Nov 8 (Reuters) - Greece posted its biggest deflation since 1962 on Friday, as consumer prices fell 2.0 percent on an annual basis, data from the statistics service showed on Friday.

The EU-harmonised inflation reading fell 1.9 percent from 1.0 percent in September. The October reading was below a forecast of -1.5 percent.

Greece Internal Devaluation Update

April 23, 2013, 2:48 PM ET

ByMatthew Dalton

The Wall Street Journal

            Without the tool of currency devaluation, the euro zone is hoping “internal devaluation” can restore competitiveness to the bloc’s periphery. What’s that?

It’s an economy-wide fall in wages and, more broadly, prices. Officials have been careful not to say the “D” word – that’s “deflation” – but Europe’s policies call for a period of deflation in euro-zone countries with the worst competitiveness problems.

Greece enters deflation for first time in 45 years

Greek consumer prices fell year-on-year in March, taking the battered economy into deflationary territory for the first time since 1968.

By Denise Roland

1:58PM BST 09 Apr 2013

March prices slumped 0.2pc year-on-year, according to figures from the Greek government's statistical agency Elstat.