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Mark Gilbert

Deflation Stalks the Euro Zone

A growing economy isn't enough. Consumer prices are languishing.
Cheap. Maybe too cheap.

Cheap. Maybe too cheap.

Photographer: Yorgos Karahalis/Bloomberg

The euro zone is poised to record its ninth quarter of economic growth, with economists predicting that gross domestic product figures scheduled for release Friday will show the economy expanded by 0.4 percent in the second three months of the year. Unfortunately for the European Central Bank, that revival isn't dispelling the risk that disinflation will worsen into deflation.

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