Forget all the talk about CPI or as they call it in Europe HIPC (harmonized index of consumer prices) floating just under 1%.
The true measure of inflation is credit expansion. And for the second month, credit contracted in the Eurozone.
Reuters reports Euro zone lending contraction compounds ECB headache.
Lending to households and firms in the euro zone fell again in January and money supply growth remained subdued, adding to pressure on the European Central Bank to take action next week to support the economy. Continue reading