Eurozone deflation a danger to UK

A group of economists has warned that a sustained period of deflation in the Eurozone could derail Britain's recovery. Almost half of the economists surveyed by the Centre for Macroeconomics, in a joint study between the BoE and the NIESR, said that there was a significant risk of a sustained period of deflation across the Eurozone in the next two years. Nearly two thirds of respondents to the survey think that it would pose a "significant threat" to the UK economy, which is expected to grow by about 3% this year.