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Inflation Negative In France

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Inflation in France, the eurozone's second-biggest economy, was negative in January for the first time in more than five years. Prices declined by 0.4 percent in January compared to the same month last year, INSEE said, noting that France has not seen negative inflation since October 2009. The data in France followed similar figures earlier this month that showed prices in European powerhouse Germany also declining by 0.4 percent.

The pattern of declining prices in the eurozone is creating a headache for the European Central Bank, which aims to keep inflation "close to, but below" two percent.

https://uk.news.yahoo.com/inflation-negative-france-first-time-080943064.html#5T104gh

The good news, there is still inflation in France.

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I would say that -0.4% is 'close to but below 2%'.

Well done ECB.

With such a smorgasbord of prices and adjustments, it is fairly meaningless around a few % to be fair.

EDIT:

The whole point of a small positive inflation target is to avoid the problem of 'sticky wages'. Well, let's face it, across the different fiscal country zones they're having to get used to wages being the main source of adjustment so they may as well just have a flat target for inflation.

Inflation should be 0%.

I want my £ to be worth the same in 100 years time.

That means I could save without having to invest.

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Inflation should be 0%.

I want my £ to be worth the same in 100 years time.

That means I could save without having to invest.

Wouldn't mind if they had just stuck to the 2% target these last ten years, they haven't.

10 years since the inception of CPI the index should be at 121.9...as opposed to 127.1. The MPC, safe in the knowledge of their superannuated packages have tended to sit on their hands during overshoots and panic during undershoots. 24% over target in ten years.

We need two years of deflation to be back on course to offset where the clueless chimps navigating have gotten us.

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Wouldn't mind if they had just stuck to the 2% target these last ten years, they haven't.

10 years since the inception of CPI the index should be at 121.9...as opposed to 127.1. The MPC, safe in the knowledge of their superannuated packages have tended to sit on their hands during overshoots and panic during undershoots. 24% over target in ten years.

We need two years of deflation to be back on course to offset where the clueless chimps navigating have gotten us.

thats 127 with substitutions and adjustments of course.

I guess when deflation really hits, they will substitute spam with prime rib.

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They can give pensioners an above inflation pay rise of -0.2%.

I'd imagine the triple lock is one reason why deflation really will not be tolerated in the UK like Europe. 2.5% rises could prove very costly if UK inflation gets any lower.

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