Eurozone risks Japan-style trap as deflation grinds closer | Telegraph

Ambrose Evans-Pritchard reports:

The region’s core inflation rate – which strips out food and energy – fell to 1pc in March. This is far below expectations and leaves monetary union with a diminishing safety buffer. “The eurozone is tracking the experience in Japan in mid-1990s. There is a very high risk of a slide into deflation,” said Lars Christensen, a monetary theorist at Danske Bank.

Read more at Eurozone risks Japan-style trap as deflation grinds closer – Telegraph.