Eurozone economy appears to be stabilising
Today's European consumer price index figure gave a welcome uplift to analysts around the world with the news that prices fell by just 0.2% last month against a 0.7% fall the previous month and forecasts of a 0.3% fall last month. It does appear that slowly but surely we are seeing signs of improvement in the European economy, a feeling which was confirmed by a recovery in the French and German economies last month. With the UK government also suggesting the UK economy will move out of recession at the turn of the year there is a feeling that maybe the Eurozone is over the worst and recovery is just around the corner?
However, while the news is certainly starting to turn more positive in Europe there is still a risk that as and when economies move into positive territory we could see a boom in consumer and business markets which could possibly push inflation higher. It will then be up to central banks around the world to work together to try and control the flow of money to consumers and businesses and try to contain any damage which a high inflation rate would do.
There are still many factors to consider even if, as expected, the European and worldwide recession is close to an end.
Share this..
Related stories
Toyota set to recall 437,000 Prius hybrid vehicles
After days of rumours it has been confirmed that Toyota is to recall 437,000 Prius hybrid vehicles amid concerns about the car's software and how it reacts to breaking on slick surfaces. While not all Prius hybrid vehicles will be recalled, the announcement will affect around 8,500 vehicles in the UK acquired before January 27. This is just the latest in a long line of damaging headlines about Toy...
Read MoreShort-term pain long-term gain
As government forecasts for the performance of the UK economy in the short, medium and longer term come under more and more scrutiny there is no doubt that UK taxpayers will be in for a period of "short-term pain and long-term gain" with regards to taxation. However, the level of pain felt could increase substantially if the UK government's economic forecasts are found to be overly optimistic in t...
Read MoreThe twelve saves of Christmas
08/12/2014 According to a recent article, this year Britons intend to spend on average £868 over the festive period, with spending on food, drink and decorations increasing on previous years. However, at the same time, surprisingly people are planning to spend less on presents. The average spend on gifts is expected to be £345.65, although there are some who according to the article, have a...
Read MoreG20 leaders set to tighten bank financing regulations
The forthcoming G20 meeting will see a flurry of promises and objectives announced with one of the major plans set to revolve around banking finance. There is a feeling that the financial regulations which cover the worldwide banking sector will be tightened to ensure that additional capital is held on the balance sheet as a buffer between the good times and the bad times.
If these...
Sterling falls below $1.50 against the dollar
Sterling has fallen to a recent low of under $1.50 on the exchange rate markets after the Bank of England came out to suggest that UK rates could fall substantially lower in the short term. This has taken away much of the support for sterling which has fallen from around two dollars to the pound over the last 12 months. A mixture of falling interest rates and a weakening economy not to mention the...
Read More