Euro zone policymakers like to talk. They often contradict each other at separate speaking engagements on the same day. But they have struck a chorus in recent weeks, asserting that deflation is not a threat.
Members of the ECB Governing Council have been particularly vocal, insisting they will not have to alter policy to counter falling prices.
Jan 9: Mario Draghi says the euro zone may “experience a prolonged period of low inflation” — steering clear of even mentioning the word deflation.
Jan 21: ECB’s Ewald Nowotny says “we neither see inflation nor do we see deflation in the euro zone”.
Jan 23: Draghi says “the risks of deflation or inflation are limited at this point in time.”