Monetary economics

Has the period of deflation - when the value of labor, business and land plummeted as a result of the debt crisis - come to an end? Are we done with the austerity programs and the strings attached to them? The answer to both questions is yes and no. The deflationary period is over and austerity-mandated restrictions have ended in all but one area: salaried labor.

Declines in inflation over the next months will further boost the rise in the share of Turkish Lira deposits in total, according to a post on the Turkish Central Bank's blog.

The share of lira deposits in total deposits grew from 48.4 percent to 51.8 percent in July-August, the blog post by researchers and economists working at the bank stated.

As widely expected, the Central Bank has opted to keep the policy rate, the one-week repo auction rate, stable at 50 percent.

Chinese consumer prices rose in February for the first time since August, data showed on March 9, bucking a months-long stretch of deflation that compounded the country's myriad economic woes.

The world's second-largest economy posted some of its lowest growth in decades last year and is battling a prolonged property sector crisis and soaring youth unemployment.

Greeks remain inflexible on food spending since, despite the reduction in disposable income due to constant price hikes, the expected reduction in sales volume, which would probably also work in the direction of deflation, has not happened.

Over one in five small and medium-sized enterprises plans to raise their prices of goods or services in the second half of 2023, showing that inflationary pressures will continue for some time to come.

China slipped into deflation for the first time in more than two years in July, official data showed yesterday, as slowing domestic spending weighs on the post-COVID economic recovery.

The reading comes a day after news that the country suffered its biggest fall in exports since the early days of the pandemic, while imports tanked again as domestic and global demand fall away.

Banks are expecting a decrease in demand for business loans, especially from small and medium-sized enterprises, in the second quarter of the year, as a result of the rise in interest rates and the increase in the cost of money, which discourages borrowing.

The Central Bank has not changed its 2023 inflation forecast and maintained its year-end consumer price index at 22.3 percent.

Harmonized inflation in Greece "fell" to 9.8% in October, according to Eurostat data. At the same time, the consumer price index in the eurozone increased by 10.7%, setting a new record.