Deflation: European PPI Plunges 7.7%

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There’s just no evidence anywhere that central banks are halting the relentless deflationary slide.

MarketWatch:  September producer prices in the 16-nation euro zone were down 7.7% from the same month last year, the statistics agency Eurostat reported Wednesday. Compared to August, prices fell 0.4%. Both figures were in line with expectations. The euro saw little reaction to the data and remains up 0.3% versus the U.S. dollar at $1.4754. The drop was driven in large part by declines in energy prices. Energy prices were down 17.6% compared to September last year and fell 1.9% from August, Eurostat said. Excluding energy and construction prices, PPI fell at a year-on-year rate of 4.3%, while posting no change from August.

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