Home > Data, Europe, Inflation > Eurozone Deflation Watch

Eurozone Deflation Watch

There’s always “good news” from the European periphery where the cost of living is falling, falling, falling – every British politician’s dream (and they don’t even need price controls).

Looking at Eurozone macro data still feels a little like “rubbernecking”… but I’ve mastered Eurostat now, so here goes.  Charts here show the headline HICP, the HICP at constant taxes (HICP-CT) and the HICP ex administered prices.

Greece HICP

Greece HICP. Source: Eurostat

Portugal HICP

Portugal HICP. Source: Eurostat

Spain HICP

Spain HICP. Source: Eurostat

All three of the above have large “VAT wedges” since 2009.

In fact even the aggregate Eurozone HICP has a noticeable “VAT wedge” of its own, which I had not realised.

Eurozone HICP

Euroarea aggregate HICP. Source: Eurostat


Categories: Data, Europe, Inflation
  1. ChrisA
    October 4, 2013 at 04:04

    Wow – scary charts. I guess the long term plan is for all the retired fixed income folks to move to Greece and Spain, while the productive parts of the European economy move to the UK.

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