Interactive: UK inflation hits 0.3 per cent, but how does it compare to other European Union countries? February 17, 2015 UK inflation slowed to 0.3 per cent in January, lower than December’s figure of 0.5 per cent and a good distance below the two per cent target for the Bank of England. More on this story: UK inflation falls to its lowest since records began But the UK is not alone in missing targets: the [...]
German gross domestic product roared ahead of France in 2014 February 13, 2015 German economic growth raced ahead of its counterpart France towards the end of last year, in another sign the euro area is increasingly becoming a "two-speed" region in terms of economic growth. German gross domestic product (GDP) surged 0.7 per cent in the fourth quarter of 2014, having expanded 0.1 per cent previously, its federal [...]
Yanis Varoufakis urges Germany to support bridging loan and warns of Greek Nazism February 5, 2015 Greece's rock star economist Yanis Varoufakis has met with German finance minister Wolfgang Schaeuble to discuss the future of Greece and the Eurozone. Varoufakis was under intense pressure today after the European Central Bank scrapped its acceptance of Greece's debt as collateral for fresh cash. In a press conference following their meeting, it soon became [...]
European Commission raises Eurozone growth forecast to 1.3 per cent on crumbling oil prices and weak euro February 5, 2015 The European Commission nudged up its official growth forecast for the single currency bloc today, citing crumbling oil prices, a weaker euro and the European Central Bank's (ECB) generous stimulus package unveiled earlier this year. The Eurozone will grow at a rate of 1.3 per cent this year and 1.9 per cent in 2016, the [...]
Eurozone slips further into deflation January 30, 2015 The Eurozone slipped further into deflation in January, with inflation falling to -0.6 per cent, down from -0.2 per cent in December. The figure is a record low for the bloc, and worse than analysts had feared: they had expected a fall of -0.5 per cent. Of course, the fall was, in part, caused by [...]
Deflation has arrived in Germany: Inflation rate falls to -0.5 per cent in January January 29, 2015 Germany has slipped into deflation for the first time since the global financial crisis, supporting the European Central bank's recent decision to unleash its biggest "bazooka" on the ailing Eurozone. Consumer prices fell -0.5 per cent on an annual basis in January, according to flash estimates from Germany's statistics office. This meant they had fallen [...]
Investors should not ignore the deflation threat January 20, 2015 The spectre of deflation is once again looming, with Bank of England governor Mark Carney refusing to rule it out in the UK in the coming year. It may be the stuff of economists’ nightmares, but has the prospect of falling prices sent Britons scurrying to the hills? Not a bit of it. Many consumers [...]
Eurozone money printing policy expected this week January 18, 2015 European officials are expected to announce the start of full on quantitative easing (QE) this Thursday. QE involves buying large amounts of typically sovereign assets with newly created bank reserves – cash that banks keep at the central bank. It is hoped that QE will reignite the stagnant Eurozone economy and bring inflation closer to [...]
Don’t count on cheap oil and money to stave off a new Eurozone crisis forever January 15, 2015 The Eurozone is in a vulnerable state once again. Five years ago, the euro crisis – that bête noire of the region’s economy – unfolded. Since then, much has been done to repair and strengthen the Eurozone’s architecture, ranging from the establishment of a bailout fund and the creation of a banking union, to European [...]
Greece deflation worsens as vital general election nears January 13, 2015 Inflation has delved deeper into negative figures in Greece, figures released yesterday show. Greek inflation was minus 2.6 per cent as measured by the year-on-year change in the consumer price index, according to data from the Hellenic Statistical Authority. The figure marks a steep drop from November’s figure of minus 1.2 per cent. Greece has now [...]