Europe Gets a Halloween Scare on Inflation - Bloomberg Business Week

http://www.businessweek.com/articles/2013-10-31/europe-gets-a-halloween-scare-on-inflation

On October 31st Europe's inflation plummeted to 0.7 percent. This is very low, especially since in September it held a record high of 12.2 percent. This is not good for the European Central Bank. Due to the decrease in inflation the bank now has a lot of pressure on them to cut interest rates. October now marks the ninth consecutive month inflation has decreased below the bank's 2% target. In the article they say; "One especially troubling aspect of the inflation data was a slump in the services sector, suggesting that recovery across the region has not gained much traction. The last time inflation was this low, in 2009, the euro zone was mired in recession." This is not only not good for the European Central Bank but countries that use the euro could possibly be affected too.

Compared to the U.S. Europe's inflation is lower then ours and seems to be hurting them right now. Thankfully the U.S. has not been hurt yet due to inflation being too low, but it could be possible. The European Central Bank and the U.S. Fed have the same 2% target for inflation, which I thought was very interesting and did not expect. So long story short the over all U.S. economy might be doing worse than the European Economies but our inflation is definitely better than theirs.