Most analysts expect ultralow inflation to prompt the European Central Bank to purchase large amounts of government bonds in early 2015 to raise the money supply and further depress borrowing costs, following a route taken by central banks in the U.S., U.K. and Japan. Commerzbank economists said Friday they expect eurozone inflation to hit zero by January. “We will do what we must to raise inflation and inflation expectations as fast as possible,” ECB President Mario Draghi said last week. Inflation in Japan is also moving further away from the Bank of Japan ’s 2% target, a vital element of Prime Minister Shinzo Abe ’s efforts to defeat deflation, which is raising some economists’ expectations that the central bank will again expand its monetary easing program.

— govts fight disinflation  

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