Deflation fears have gripped the eurozone again:
Figures released Monday by the Eurostat statistics agency showed consumer prices were 0.7 percent higher in February than the year before. That was lower than the 0.8 percent initial estimate and took the annual rate down to the level it was in October, which was the lowest level since late 2009.
The figures are likely to reinforce concerns in the markets that the eurozone risks suffering a bout of deflation, or falling prices. Deflation can hurt an economy by encouraging consumers and businesses to delay spending in the hope of cheaper bargains further down the line.
How did we ever get so twisted in our thinking that saving money to buy cheaper goods in the future is a bad thing?
Oh, right — we prefer to walk along the Keynesian tightrope of easy money and easy credit with only the occasional bubble to send us plunging to the bottom.