Investors can survive rich world lowflation

But risks of EU deflation still loom

business graph

David Hooker, portfolio manager, Insight Investment
Eurozone inflation of 0.5% is the lowest since the autumn of 2009 and well below the European Central Bank target rate of 2%. The threat of full-scale deflation in the eurozone is now real, though still unlikely. Inflationary trends tend to play out over two or three years and the eurozone is seeing current downward pressure on prices as a hangover from the sovereign bond crisis in 2011. Against this backdrop, business investment fell and consu

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