Deflation in Europe, now everyone is waiting for the cannon of the ECB – The Messenger

Deflation in Europe, now everyone is waiting for the cannon of the ECB – The Messenger

In Italy the scenario is that prices frozen, stuck on a mean change of zero. In Europe the trend is even more explicit with a 0.2 percent decline delo authorizing talking about real deflation. In both cases, the origin is the fall in crude oil prices that brings with it the prices of fuels and other energy-related goods. It is from us that throughout the Old Continent the December data represent a reversal of the temporary rise in inflation that was recorded in previous weeks. Of course the average values ​​reflect different situations: for example, it highlights the contrast between the drop in prices of goods and the growth of the services (1 percent in Italy and 1.2 in Europe, compared to December of 2013).

But at this time the focus is not so much on the analysis of what happened, but rather on the forecasts of what will happen in terms of monetary policy. Expects the European Central Bank steps really action, initiating the unconventional measures that Mario Draghi said he was ready to put in place to counter deflation. Indeed, according to some might be too late: Sergio De Nardis, chief economist of Nomisma, think that the time already past is likely to take effect the strategy of quantitative easing, or direct purchase of sovereign debt in order to enter massive doses liquidity in the economic system. Even the bags were waiting for the cannon in Frankfurt and at least for a while ‘that was enough to push Milan, where, however, have other concerns then prevailed. The conviction of a rapid intervention of the ECB has instead pushed the euro to 1.18 on the dollar share, the minimum levels for nine years now.

 January 7, 2015 18:42 – Last Updated: 20:22

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