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CHEAP OIL PUSHED eurozone price growth into negative territory in December – the first time the region has experienced deflation since the depths of the financial crisis.
The news is expected to mount even more pressure on European Central Bank (ECB) president Mario Draghi to launch radical economic-stimulus measures later this month.
Official estimates from Eurostat showed eurozone inflation was expected to be negative in December when compared to the same month in 2013, mainly due to a massive drop in energy prices.
Annual inflation was down from 0.3% in November to -0.2% for the most recent month as energy costs plunged 6.3%.
There was also a 1% drop in unprocessed food prices, with costs for both industrial goods and the broader food, alcohol and tobacco sector also flat.
It is the first time eurozone prices have slid into negative figures since October 2009.
Time for ECB to get radical
Draghi and the ECB have so far been resisting calls to unveil a quantitative easing programme – which means the bank would effectively print money to lend to European states – to revitalise flagging economies across the region.
The official lender has already cut interest rates to record lows and launched a corporate bond-buying scheme but neither move has been enough to kickstart a broad recovery.
Ireland has been one of the few eurozone economies to buck the trend and post strong GDP growth figures.
Germany has been particularly resistant to more-radical stimulus measures, however deflation poses a major risk as it is considered harder to haul in than even sky-rocketing inflation.
The fear is that consumers will stop spending because they expect prices to keep falling, putting pressure on both company profits and government tax takes, and sending economies into free fall.
Inflation well below target
Central banks generally target inflation of about 2% as being healthy for economies. In the eurozone, the figure has consistently been hovering below 1% and barely above zero in recent months.
The ECB has already been widely tipped to announce a quantitative easing plan when it meets later this month.
- Originally published at 11.21am
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Is this a wind up ?
On the other hand I’d love to have the money to buy it
Just like and share to be in with a chance to win one.
Not for me.
I couldn’t tell my boss I was late because of my watch.
Don’t see any reason there to pay 1.1m for a watch, save the money and ask someone the time, or if you can pay that type of cash for a watch why the fu*k would you care what time it is
I honestly think a finely made watch is beautiful. I feel naked if I don’t wear one on a night out. I think a watch and ring is the only jewellery a man should wear. I do have a watch fetish but have never spent any more that 500 euro on one. Any more is just silly. But sure if you are loaded why not.
I agree family guy, I wear my watch all the time and feel naked without it.
Does it have a calculator though?
And all it does is tell the time
does it have a sexy voice..??
Ill have 2
One for each wrist?
Oh yeh. I’ll be unbalanced if i don’t
Another upstart of a company.
Established no doubt, to separate new money easterners from their cash.
Well if they’re foolish with their dollars.
Maybe they deserve to be shafted.
Your a boor.
Fact are booring.
My auld Casio will do me. Best 15euro I ever spent.
I’d rather have a Veyron.
But not the cost of running it. They would financially cripple you, which is why the vast majority of those on the market have hardly been driven.
You think the running cost is why the majority of veyrons are not driven in public…?
Skin, no, not the sole reason but almost certainly a contributory factor.
Four sprung durch technik?
Time is your worst enemy, why would you pay 1.1 Million, for a watch, and half the world’s Children starving, it beggers belief.
300 watches = 1 children’s hospital
But you can’t wear the other 299 watches on your arm now can you.
Do the ladies really judge a fella by the piece on his wrist?!
To spend that much on a watch you’d have to have a piece for a head…
It’s not what’s on his wrist that they care about, it’s the distance from the wrist to the tip of the middle finger. So shallow…
I’ve got 200 of these unwrapped which can’t be sold. Like and share to be in with a chance to win one :)
Well it would also have to bring me my tea and toast up to the bed in the morning as well if I paid that price for it!!!!!!
Does it only work when tethered to an iPhone 6?
what is a power reserve function? and how is it powered?
Looks like the strap is extra!
If I could afford this I would care what time it was
Saw a watch that cost $350,000 in a shop the other day. It’s made from authentic pieces salvaged from the Titanic! Some people…
Watch yourself….
have your say