Is Europe heading towards deflation?
That’s been a hot topic of conversation lately and fresh numbers just out from Eurostat should add to the concern.
Check out the trends of both CPI and core CPI (excluding food, energy, alcohol, and tobacco). The inflation numbers are a steady march downward. Core is actually at its lowest reading yet.
The big fear in Europe this doesn’t isn’t collapse, it’s Japanification. And these numbers do nothing to alleviate that concern.