France deflation fears as prices fall

French prices fell 0.6pc in January from a month earlier

French core inflation fell sharply last month, heightening concerns of a deflation trap and putting more pressure on the European Central Bank to respond with monetary stimulus.

French prices fell 0.6pc in January from a month earlier, according to French statistics office INSEE.

DYI Comments:  Price rises are slowing up world wide and it would be of no surprise if the U.S. experiences mild deflation in the -1% or -2% range.  This would drop interest rates further especially for U.S. Treasury debt.  Not until early into the next decade will the inflation genie come out of the bottle due to all of the liabilities for Social Security and Medicare.  So until then low interest rates will prevail.

DYI