Ample spare capacity and further falls in commodity prices should contain price pressures for the foreseeable future, even in those countries which are now experiencing a strong recovery. Meanwhile, several euro-zone countries are at risk of a period of deflation due to their high levels of unemployment, lack of competitiveness and continued private sector deleveraging. Japan, too, may relapse into deflation, once the effects of currency depreciation and indirect tax hikes have passed.
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:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services