Germany's consumer price index fell 0.3% month-over-month in January. It's the first time the inflation rate went negative since September 2009. Deflation is when prices fall, consumers and businesses often hold back on purchases hoping for even lower prices to come. This article examines the economic risks of dropping prices and what it could mean in the future for Germany and Europe.

According to the article, the Federal Reserve may be increasing interest rates in early 2015, increased rates anticipated to come much later in the year. Fed-Watchers and analysts may begin to see the accelerating wage and price inflation, as well as unemployment rates reaching NAIRU. This article also explains some key elements in our learning for this week such what NAIRU is, pressuring on wages, effects of low unemployment rates, etc...