October 16, 2014

...AND CHEAPER...:

EU Inflation Falls to Five-Year Low in September (PAUL HANNON, October 16, 2014, WSJ)

The figures showed that eight of the EU's members recorded a decline in consumer prices over the 12 months, with five of those being members of the eurozone: Greece, Spain, Italy, Slovenia and Slovakia. The three EU members that don't use the euro and which suffered the same fate were Bulgaria, Hungary and Poland.

Weak pricing power has been roiling some of Europe's biggest companies. On Thursday, food giant NestlĂ© SA NESN.VX -2.99%  said sales fell 3.1% in the first nine months of the year, partly because weak consumer spending capped its ability to raise prices. The company cited Europe as particularly difficult.

Chief Executive Paul Bulcke said Nestlé had almost no pricing power in Western Europe, which represents nearly 20% of its sales. Some retailers are pushing back on prices amid escalating competition between supermarkets, the company said.

Posted by at October 16, 2014 7:04 PM
  

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