Italy is among a group of
eurozone countries in danger of suffering a "deflationary
spiral" that will hit prospects of economic recovery, ratings
agency Standard & Poor's said in a report on Thursday.
Italy went into deflation for the first time in decades in
August, when the annual inflation rate was -0.1%, a figure that
dropped to -0.2% in September.
S&P said the low inflation or deflation registered in
Belgium, Greece and Spain and Italy could "lead to a higher
propensity to save" and hit consumer spending and investments.
This would have an effect on prices, the agency said,
"increasing the risk of a vicious deflationary spiral".
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