In Germany, however, the mood is very different.
Hans-Werner Sinn, the president of Germany's influential Ifo Institute for Economic Research, told CNBC on Wednesday that southern European countries will continue to deflate prices in an effort to reduce imbalances in the euro zone.
"They need to deflate in order to increase their competitiveness... they have to rebalance the relative prices by coming down," he said.
Bundesbank President Jens Weidmann also played down the threat of deflation in a speech on Thursday, insisting that deflation risks were limited for the single-currency bloc.
(Read more: German business: Europe should copy, not criticize surplus)
Germany has come under pressure over its export-led growth. Last year, both the European Union (EU) and the U.S. Treasury complained that Germany's current account surplus (which includes trade as well as flows of money and investments) was growing at the expense its euro zone neighbors, creating deflationary pressures.
The President of the European Central Bank (ECB) Mario Draghi, meanwhile, has iterated on several occasions that he would be willing to use policy measures to try to ease credit conditions.
Last year, surprisingly low inflation for the euro zone in October spurred the ECB to cut its refinancing rate to 0.25 percent from 0.50 percent at its November meeting.
However, any extra liquidity injected into the system could rile Germany, which fears that more easy cash could stoke inflation in its own country.
(Read More: Forget the currency war, now it's a deflation war)
Michael Hewson, the chief market analyst at CMC Market, said there was no doubt that prices were falling in some parts of the euro area, but stressed this was an unavoidable side effect of internal devaluation and adjustments as countries undergo structural reform programs.
"Given that unit labor costs in France and Italy are still rising relative to Germany, we could well see more deflation, irrespective of what measures the ECB takes, particularly if structural rebalancing continues to take place," he said in a research note on Thursday.
By CNBC.com's Matt Clinch. Follow him on Twitter