8/14/09

The real danger: global deflation

Consumer prices in the 16 countries that use the euro accelerated their decline to a fresh record low rate in July, but the earlier-than-expected return to growth in Germany and France may lead to a quicker rebound.

The European Union's official statistics agency, Eurostat, said Friday the consumer price index in the euro zone fell 0.7% in July from a year earlier. In June the year-to-year rate fell 0.1%, the first annualized decline in the currency bloc's 10-year history.

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George Dagnino, PhD
Editor, since 1977

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