Skip to main content

Euro-zone and Japan yet to escape from deflation threat

Six years after the onset of the global financial crisis, there is still a threat of deflation. The biggestworry is in the euro-zone, where inflation expectations have slipped and the ECB’s actions stillappear too timid. In addition, the recent pick-up in headline inflation in Japan is largely due totemporary factors and may not be sustained. That said, there is little risk of deflation in the UK,where economic activity is expanding rapidly. And core inflation in the US, where the recovery isshifting up a gear, is likely to climb above the Fed’s 2% long-run target next year.

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


Get access