Deflation Watch

Originally published by Bloomberg on April 15, 2014 Read the original article.

Home prices keep soaring in London. But, in most other sectors of Britain’s economy, price pressures have been subdued. Indeed, in March, the inflation rate in the U.K. fell to its lowest level in four years, and sits below the Bank of England’s target. Read this excerpt from an April 15 Bloomberg story: Britain’s inflation [...]

Read More

Originally published by Reuters on April 10, 2014 Read the original article.

Will the global economy face deflation once central banks remove their stimulus programs? Jeffrey Gundlach, chief executive and chief investment officer of DoubleLine Capital, believes the answer is yes. In a recent speech, he remarked, “I continue to believe that there is more deflation in the world than most people appreciate.” Here’s an excerpt from [...]

Read More

Originally published by Bank of America Merrill Lynch on March 12, 2014

Deflation

Bank of America Merrill Lynch has just issued a sobering assessment about the U.S. and European economies: Despite the ongoing economic recovery, we believe there is a significant risk of either a continued drop in inflation or outright deflation in one or several advanced economies over the next several years. In addition, the financial giant [...]

Read More

Originally published by Wall Street Journal on March 28, 2014 Read the original article.

Inflation rates for several European nations keep sliding despite years of economic stimulus. Indeed, Greece, and now Spain, have slipped into outright deflation. But even Europe’s largest economy, Germany, faces falling inflation rates. Here’s an excerpt from a March 28 Wall Street Journal article: The rate of inflation in euro-zone countries keeps dropping. The latest [...]

Read More

Originally published by Marketwatch on March 28, 2014 Read the original article.

A deflationary trend continues across the European Union. The spotlight is now on Spain where the economy remains fragile, and weak consumer demand has put downward pressure on prices. In March, the nation slipped into deflation. A March 28 Marketwatch article provides the details. Here’ an excerpt: Consumer prices in Spain fell in March as [...]

Read More

Originally published by Bloomberg on March 19, 2014 Read the original article.

A March 19 Bloomberg article explains why deflation is a far bigger economic foe than inflation. The ogre stalking the globe’s weak economies isn’t the one people have learned to fear. The monster isn’t inflation but its opposite: falling prices. Its name is deflation and it appears friendly. Why be afraid when the cash in [...]

Read More