rollover Posted February 19, 2015 Share Posted February 19, 2015 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. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted February 19, 2015 Share Posted February 19, 2015 (edited) Deflation positive. Are the French having le bon or le merde deflation ? Edited February 19, 2015 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted February 19, 2015 Share Posted February 19, 2015 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. Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted February 19, 2015 Share Posted February 19, 2015 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. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted February 19, 2015 Share Posted February 19, 2015 I would say that -0.4% is 'close to but below 2%'. Well done ECB. It's closer than the 5% we saw 2 years ago. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted February 19, 2015 Share Posted February 19, 2015 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. Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted February 19, 2015 Share Posted February 19, 2015 They can give pensioners an above inflation pay rise of -0.2%. Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted February 19, 2015 Share Posted February 19, 2015 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. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted February 19, 2015 Share Posted February 19, 2015 minimum wage can fall too. Quote Link to comment Share on other sites More sharing options...
shindigger Posted February 19, 2015 Share Posted February 19, 2015 thats 127 with substitutions and adjustments of course. I guess when deflation really hits, they will substitute spam with prime rib. Pollocks! Quote Link to comment Share on other sites More sharing options...
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