The perceived rigidity of euro-zone labour markets will certainly not prevent a brief period of negative inflation in the region. What’s more, with wage growth probably set to drop towards zero in the coming quarters, there is a risk of a more sustained and damaging period of deflation.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services