(Wow!) GDP #deflator (change) in the euro area and in #Germany, chart @nghrbi @PictetAM
The key question is whether the collapse in the GDP #deflator signals a temporary return to lower inflation (#disinflation) or a potential slide into #deflation - If prices stabilize after the shock, the inflation outlook may improve. Yet @ECB ‘s obsession with monetary austerity remains x-factor.