Skip to main content

Central Europe's deflation risk not as great as the euro-zone's

There are growing concerns that, as the euro-zone flirts with deflation, Central Europe could suffer a similar fate. However, the drivers of the deflation threat in the region are different and seem to be less pernicious to those in the euro-zone. Indeed, so far at least, falling inflation has boosted real wages and supported a recovery in domestic demand.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.