Euro Area Limping Toward Deflation Fuels QE Calls as ECB Meets

The euro area is edging closer to the moment that deflation risks become reality.

Companies cut selling prices by the most since 2010 as they attempted to boost sales in the face of a flagging economy and slowing new orders, Markit Economics said today. This in turn is squeezing profit margins and reducing resources for hiring and investing, damping chances of an economic rebound, the London-based company said.