European Inflation Drops -0.3%

euro inflation dec 2020

Prices in Europe are falling instead of rising despite the European Central Bank (ECB) buying assets since 2015. That’s according to the latest data by Eurostat which estimates inflation fell by 0.3% this December across some of the world’s biggest economies. A fall in energy prices appears to be the primary reason as food prices are up by close to 2%. However, it’s not clear just how much of these lower oil prices have been passed on to households. Nor is it clear why the biggest single expenditure, rent or mortgage payments, are not included in this calculation. Making this very narrow inflation, and yet it’s what the central bank uses to justify its continued printing to the benefit of Greece which now the central bank is paying to borrow, quite a turn from bankruptcy bond rates. In addition, non-energy goods have seen a fall in price too with old…

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