I am at an exec offsite for my employer yesterday and today and cannot blog properly. However a quick note that October inflation figures are out for the Eurozone, and the mystery of moderately strong inflation in the PIGS countries continues.
Overall, the Eurozone had 3% inflation over October 2010, with all the PIGS countries coming in near or above the average: Greece 2.9%, Spain 3%, Italy 3.4%, and Portugal 4%. Ireland continues to be the main exception at 1.5% - the only one of the troubled peripheral countries with lower inflation than Germany at 2.9%. So the idea that these peripheral countries have deeply depressed economies and will slowly disinflate their way to competitiveness doesn't seem to be working out. I continue to be mystified as to why sellers have enough leverage to increase prices here.
Across the Eurozone, transportation continues to be the strongest component at 5.8% with housing a close second at 5.1%. Inflation without unprocessed food or energy was 2.0%