ECB, Europe

Deflation for Euro region ?

European Central Bank President Mario Draghi hoped never to see this moment: Consumer prices in the euro region have dropped by 0.2 percent, according to December figures just published:

Deflation

Deflation — a sustained period of falling prices that discourages consumers from spending and businesses from investing — threatens to worsen the euro bloc’s economic woes. Draghi spent most of 2014 in denial about the risk, claiming to be upbeat about the ECB’s chances of meeting its 2 percent inflation target over the medium term. Finally, last week, he admitted that the mandate won’t be fulfilled.

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