http://www.tradingeconomics.com/greece/inflation-cpiWith a contracting economy and double digit unemployment you would expect deflation. Instead inflation surged from near 0 to 6 percent in the year from July 09, and has only come down gradually since, still higher than Germany.
http://www.tradingeconomics.com/spain/inflation-cpiIn Spain too, you see even has unemployment has been jumping to 21 percent, the inflation rate has been rising. This is foiling the authorities' gamble on internal devaluation. I don't understand why more hasn't been said about this.
