Latest Deflation Stories
Japan's 225-stock Nikkei index, the key Asian market barometer, ended 2008 down about 42 percent but recovery hopes remain high for next year. The 2008 loss was the steepest one-year percentage drop ever as the country reeled under a recession, the devastating impact of the global financial turmoil and the yen's sharp rise on its export-driven economy. The index, however, gained some of its lost ground in the final trading sessions of the year, encouraged by the economic stimulus measures to...
Consumer prices have fallen 3 percent in the past three months and may drop another 1 percent in 2009, economic forecasters at HIS Global Insight said. The price decline is the sharpest three-month drop in prices since 1933, The New York Times reported Wednesday. Deflation alarms economists, but has a silver lining for some families, the Times said. Economists fear that falling prices cause shoppers to hesitate.
Inflation is easing in China but a Merrill Lynch report says China's economy could experience deflation as early as at the start of the New Year. China's consumer inflation and wholesale price inflation have been dropping since the start of 2008, when economists were concerned about preventing the overheating of the economy. At the end of November, China's annual consumer price index stood at 2.4 percent, down from 4 percent in October and from February's 12-year high of 8.7 percent.
China said Thursday its annual inflation rate slowed to 2.4 percent in November, the seventh straight month of decline. The National Bureau of Statistics said the November consumer price index compared with 4 percent in October and February's 12-year-high of 8.7 percent. November's 2.4 percent also was the lowest since January 2007. The agency said food prices, which account for more than a third of China's CPI, rose 5.9 percent from year-ago levels, down from 8.5 percent in October and 9.7...
Bank of England Gov. Mervyn King said Tuesday the central bank may need to cut rates to stimulate the country's sluggish lending. I am in no doubt that the single most pressing challenge to domestic economic policy is to get the banking system to get lending in any normal sense.
The surprise development of falling prices has experts worried that such a hiccup could greatly stall the U.S. economy, economists said.
Inflation in Britain fell in October by the biggest margin since 1997, possibly signaling a central bank lending rate cut in December, an economist said. Howard Archer, chief economist at IHS Global Insight said the pace of inflation dropping from 5.2 percent in September to 4.5 percent in October, reinforces the belief that the Bank of England will cut interest rates sharply further in December as it tries to limit the length and depth of the recession, the Times of London reported Tuesday....
by The Associated Press Wholesale prices bolted ahead in May at the fastest pace in six months as energy and food costs marched higher. The U.S. Labor Dept. reported on June 17 that its Producer Price Index, which measures the costs of goods before they reach store shelves, shot up 1.4% in May.
- a meat pie that is usually eaten at Christmas in Quebec