Friday, 30 January 2015

Deflationary Pressures Increase Further in the U.S., Eurozone and the UK

The aggregate money supply for the U.S., Eurozone and the UK, measured in U.S. dollar terms, continues to decline. In December, the money supply declined 1.04% compared to previous year, the biggest decline since August 2012.

A stronger dollar and a still declining UK money supply were the drivers of the negative growth rate.

Eurozone money supply when measured in Euro increased sharply during the month.

Overall, deflationary pressures as measured in U.S. dollar terms increased further on aggregate in December for the three economies.