A trigger for this was the release of consumer price data which showed a significant increase for the month of May, reducing market
concerns about deflation.
And there are new
concerns about deflation, not inflation.
Industrial production fell 3.7 % in May and with consumer prices rising just 0.5 % in June,
concerns about deflation risks in France are increasing.
Furthermore, the news that more and more «economists» are
concerned about deflation rather than inflation leads me to think that an inflationary trend is more likely than not.
Not exact matches
While this is still below 2014 levels, higher oil prices, improved European growth and some evidence of stabilizing inflation in Europe appear to have left investors less
concerned about the prospect of
deflation.
They also interpreted statements from the US Federal Reserve around that time as indicating that the Fed was increasingly
concerned about the possibility of
deflation in the US economy and that it might buy long - term bonds to add to monetary stimulus.
This rise partly reversed earlier declines, which had reflected a number of factors: the expected negative impact of the Asian situation on the local economy, associated
concerns about the possibility of global
deflation, and the projected fall in the stock of bonds on issue reflecting the expected run of Budget surpluses and the proposed sale of the remainder of Telstra.
The very low interest rates reflect
deflation concerns and extreme skepticism
about earnings from stocks.
When interest rates get very low, it reflects
deflation concern and skepticism
about future earnings.