The government is to set a deflation target of 5%

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The government is to set a deflation target of 5%

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In the current economic climate and with the government's austerity measures, many workers and employees, especially in the public service, have to face a decrease in income, which can only be maintained by a simultaneous decrease in the cost of living. Hence, the government is to abandon it's current inflation target of 2% and replace it with deflation target of 5%, until the econonic conditions have stabilised. The target should then be set to zero after.

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