http://www.nytimes.com/2014/10/25/business/eurozone-falters-amid-deflation-as-a-mildly-inflationary-us-grows.html?ref=international
There has been a recenet rise in the amount of deflation in the Eurozone while the United States has seen a raise in inflation.
The rise of goods and services has been linked to the rise in prices of food. The CPI has risen 1.7 percent over the past 12 months in the US but that is the highest rate of the 15 largest countries in the EU.
The a main reason for the declining prices in Europe can be attributed to the weaker economies. Some economies look to be heading towards a double recession The price of goods have fallen but the price of services have risen.
In the past 12 months, the only European country to grow more than the US has been Poland. This can be attributed to the different currency than the Eurozone. The countries outside of the Eurozone: Poland, Britain, and Denmark all have done better than those within. Finland, Greece, Italy, Portugal, and Spain all have regressed in their economies since 2010.
The European Union has not been able to restore confidence within the economy as a whole, which could be one of the reasons behind the low demand and ultimately low inflation
ReplyDeleteThere has definitely been a decrease in the economies of the Eurozone. It is good that the United States has not been slipping as bad as the Eurozone. Deflation is not helping the Eurozone at all and they need to try and get out as soon as possible.
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