Resurrecting Global Inflation?
Will Martin of Business Insider reports, Europe is back in deflation : The eurozone slipped back into deflation in April, according to the latest numbers released by Eurostat on Friday morning . Eurostat’s latest flash data showed that consumer prices in the single currency area fell by 0.2% in April. Economists had expected inflation to fall by 0.1%, slipping from the 0.0% at March’s reading, so the reading is troubling. The number means that prices are once again falling, having come out of deflationary territory in March, and are well behind the 2% target set by the ECB for inflation. On a year-to-year basis core consumer prices grew by 0.8%, against a forecast of 0.9% and a previous reading of 1%. Core prices are an important measure because they strip out the most volatile items — things like fuel and food prices, which are subject to massive variations. It is worth noting that Friday’s data is just a flash reading, meaning that it could be revised when the final