Deflation Watch

Originally published by Marketwatch on April 15, 2015 Read the original article.

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It appears deflation is becoming entrenched in Europe. Some observers say that the Eurozone could go the way of Japan, a nation that’s been largely mired in deflation for over two decades. If, indeed, deflation becomes the “norm” in Europe, a London-based financial journalist expects four changes. Here’s an excerpt from an April 15 Marketwatch […]

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Originally published by Bloomberg on April 8, 2015 Read the original article.

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China’s Producer Price Index sank 4.8% in February. That’s the biggest drop since 2009. A big contributor is the continued decline in the price of commodities. Now, many observers are talking about the prospects of deflation in the world’s second largest economy. More than that, China’s economic challenges may have an effect beyond its own […]

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Originally published by Financial Times on April 6, 2015 Read the original article.

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A British economics professor says that a surge in the inflation rate would quickly reduce Europe’s debt burden. By contrast, deflation would stifle economic growth. The professor considers deflation unlikely. However, should deflation develop, she believes the United Kingdom would face “the prospect of lost decades.” Here’s an excerpt from the professor’s April 6 Financial […]

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Originally published by BBC on March 24, 2015 Read the original article.

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The inflation rate in the United Kingdom fell from 0.3% in January to 0% in February. February’s figure is the lowest rate of Consumer Prices Index (CPI) inflation since estimates of the measure began in 1988. — BBC, March 24 The article quotes a senior economist who said the UK “took another step towards deflation.” […]

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Originally published by Agence France-Presse on March 19 2015 Read the original article.

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Inflation has been close to zero in Sweden since 2012. In February, it was at 0.1%. Sweden’s central bank target is 2%. On March 18, the Riksbank cut its repo rate further below zero to -0.25% with the goal of seeing an upturn in Sweden’s inflation rate. Many analysts were surprised by the move. Sweden’s […]

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Originally published by Bloomberg on March 17, 2015 Read the original article.

Buildings are reflected on a Bank of Japan board in Tokyo

The Bank of Japan has a massive quantitative easing program in place to fight the nation’s long-running battle with deflation. Despite the stimulus, BOJ Governor Haruhiko Kuroda acknowledges that consumer price deflation may be in the cards, largely due to lower oil costs. Even so, Kuroda does not plan immediate additional easing. If Japan’s CPI […]

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