If EU deflation picks up, the ECB should just print its way of the problem.
Is this deflation or is it disinflation. One is good and one is bad.
Euro Zone inflation is now at 1.2%
Euro zone inflation rises to 1.2% in February - The Irish Times - Mon, Mar 02, 2009
Prices when up far too fast here. What goes up must come down. A little deflation never hurt anyone... except price gougers.
Printing money is no solution. The last thing we need is to reinflate asset bubbles.
Yay my money is worth more!
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It's deflation.Originally Posted by Duth Ealla
All this is due to Mortgages, bag of spuds in Dunnes and Tesco €7.99 up from €6.99 or 14%. No major reductions in the majority of mainstay items like food,energy etc.
the excise increases in the budget will soon bring a halt to deflation
Not yet but that will come. From April we should see more Mortgage cuts, we should see reductions in the Energy costs from the recent announcements. Also food is getting a lot more competitive and I would guess there will be yoy deflation in the coming months. There is a lot more downside yet to be factored in and we are already at -1.7%
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