Deflation Watch

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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Originally published by Bloomberg on March 13, 2015 Read the original article.

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Deflation is a decline in the supply of money and credit relative to goods and services in an economy. History shows us that the most important deflationary episodes are accompanied by declines in equity, factory and retail prices. For example, the 2000-2002 stock market decline coincided with the steepest fall in year-over-year CPI since 1964. […]

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Originally published by Guardian on March 4, 2015 Read the original article.

britain

At one time or another, many of us have heard or uttered the refrain, “Prices at the grocery store just keep going up.” But, in the United Kingdom, grocery store shoppers are finding lower prices. In February, fresh food costs fell at the fastest rate for at least eight years. The drop in food prices […]

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Originally published by Telegraph on February 26, 2015 Read the original article.

deflation

In January, the U.S. Consumer Price Index fell into negative territory for the first time since 2009. Falling oil prices were the main driver. Here’s an excerpt from the Los Angeles Times (Feb. 26): The CPI sank 0.7% in January from December, and the annual rate of inflation fell 0.1%, technically putting the economy into […]

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