Drop in German inflation raises worries for euro

first_imgThursday 30 October 2014 8:36 pm Drop in German inflation raises worries for euro Chris PapadopoullosChris Papadopoullos was City A.M.’s economics reporter until February 2016. He is an economist at OMFIF. Share whatsapp Tags: NULLcenter_img The threat of Eurozone-wide deflation and prolonged economic stagnation was heightened by figures out yesterday showing a surprise drop in German inflation.Official data revealed that month-on-month price growth was minus 0.3 per cent from September to October. The number is down from September’s month-on-month growth of minus 0.1 per cent.Annual inflation still remains above zero at 0.7 per cent. But the annual figure also represents a slowdown after September’s 0.8 per cent year-on-year growth. Deflation has become a major worry for the Eurozone. Economists are concerned that it could follow the in the footsteps of Japan. In the early 1990s Japan suffered a huge economic crash after a property bubble. At one stage the Imperial Palace was said to be worth more than the entire state of California. After the economy crashed Japan experienced two decades of deflation. During these two decades Japan struggled to sustain economic growth.European officials have boosted attempts to revive inflation by having already reduced some interest rates into negative territory. And last week saw the first purchases of private sector bonds by the European Central Bank, although some economists believe the stock of private sector bonds is too small. Germany remains opposed to purchasing government bonds.German politicians believe government bond purchases will delay necessary supply-side reform across the troubled continent. by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May Likezenherald.comMeghan Markle Changed This Major Detail On Archies Birth Certificatezenherald.comThe No Cost Solar ProgramGet Paid To Install Solar + Tesla Battery For No Cost At Install and Save Thousands.The No Cost Solar ProgramMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailMedical MattersThis Picture Shows Who Prince Harry’s Father Really IsMedical MattersInvestment GuruRemember Cote De Pablo? Take A Deep Breath Before You See Her NowInvestment GuruThe Chef PickElisabeth Shue, 57, Sends Fans Wild As She Flaunts Age-Defying FigureThe Chef PickMaternity WeekA Letter From The Devil Written By A Possessed Nun In 1676 Has Been TranslatedMaternity WeekElite HeraldKate Middleton Dropped An Unexpected Baby BombshellElite HeraldEquity MirrorThey Drained Niagara Falls — They Weren’t Prepared For This Sickening DiscoveryEquity Mirror whatsapp Show Comments ▼ Read This NextTig Notaro Never Looks Right in ‘Army of the Dead’The WrapEverything We Know, or Think We Know, About the Time-Keepers on ‘Loki’The Wrap’The Crown’: What Went Into Finding Princess Diana and Margaret ThatcherThe WrapRalph Macchio on the Secret to Making Badass ’80s Fight Scenes in 2021The Wrap’iCarly’: Nathan Kress on Preserving Integrity of Original Show, PromisesThe WrapHappy Juneteenth: 10 Movies to Stream That Celebrate Black JoyThe WrapHow Renee Elise Goldsberry Embraced Her Inner Diva for ‘Girls5Eva’The Wrap’The Hitman’s Bodyguard’s Wife’ Takes No. 1 at Box Office From ‘Quiet PlaceThe WrapBill Maher Pokes Fun at Joe Manchin: He’s a ‘Democrat Except on Matters ofThe Wraplast_img

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