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Deflation may soon be the main concern in the Eurozone. Yes, you read that right!
Less than three years after inflation peaked at over 10% in October 2022, the Eurozone is now facing deflationary risks. The economy has slowed dramatically, and inflation just fell below target. More concerning, the labor market is deteriorating. Job growth is stalling, and wage growth is expected to come down sharply. With geopolitical risks being extremely elevated and the U.S. trade war weighing on economic activity, the European Central Bank (ECB) may be inclined to lower interest rates this week (with more rate cuts to