By CHRISTOPHER LAWTON and TODD BUELL
June 12, 2014
FRANKFURT—The euro zone isn't on the brink of deflation, despite significant declines in inflation, the European Central Bank said Thursday..
.."While significant relative price adjustments are taking place in some euro area countries, it is highly unlikely that those processes will result in a downward deflationary spiral," the ECB said in the report. "The risk of deflation in the euro area appears remote at the current juncture," it added.
The latest report from the ECB confirms the recent IMF forecast that the risk of deflation in Europe is remote. Either my warnings about the nascent deflationary trend throughout Europe are totally misguided or the top policy makers have their collective heads up their arses?
