Asset Purchases And Continued Deflation

0
Asset Purchases And Continued Deflation

Asset Purchases And Continued Deflation by Jennifer Thomson, Gavekal Capital Blog

We’ve noted quite a few data releases that point to deflationary trends recently– see here, here, and here for details.

Following a rebound from the sharp drop in January of this year, preliminary figures indicate that inflation is back in negative territory for Germany:

 

Delbrook Resource Opportunities Remains Commited To Precious Metals After 4.2% Loss

Precious MetalsThe Delbrook Resource Opportunities Master Fund LP declined 4.2% in September, bringing the fund's year-to-date performance to 25.4%, according to a copy of the firm's September investor update, which ValueWalk has been able to review. Q3 2021 hedge fund letters, conferences and more The commodities-focused hedge fund has had a strong year of the back Read More

And it isn’t just consumer prices– import prices have been falling since May and export prices have been at or below 0% growth on a month-over-month basis for the last three months:

image

image

Spain, too, released consumer price data that was more negative than last month and lower than the consensus expectations:

image

With few signs of inflationary pressures anywhere in the Eurozone, it seems reasonable to expect little movement toward the ECB’s official 2% target when Eurostat releases consumer prices tomorrow:

image

All of this is to say that the ECB’s asset purchase program intent on moving inflation up towards 2% does not seem to be doing so just yet:

image

Updated on

No posts to display