Published by Jamie JemmesonAs the European foreign exchange trading session gets underway, concerns about deflation may once more be raised, analysis shows.Daily FX currency strategist Ilya Spivak forecasts that the Euro-Zone Producer Price Index will post a flat result for October later today (December 2nd), after a -0.4 per cent decline in the previous month.Year-over-year, the index gauges Euro-zone deflation at 6.8 per cent, with the October figures said to represent the rally in crude prices seen that month, when oil prices hit $82 a barrel. This in turn, could translate into higher factory gate prices, he said, although he added that commodities markets have been remarkably responsive to changes in demand conditions.With governments in Europe looking to wind down fiscal stimulus programmes, Mr Spivak warned that "a much overdue correction in risky assets may bring commodities lower and withdraw much of the upward pressure from producer prices, bringing concerns about deflation back into the foreground".For more information on international payments, visit our Smart FX site