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Latest Deflation Stories

2009-01-07 06:57:37

The U.S. Federal Reserve said rising unemployment and weak consumer confidence would slow an economic recovery through 2009. The minutes of the central bank's mid-December Open Market meeting revealed policymakers' grim economic outlook for the year, CNN reported Wednesday. The bank predicted unemployment will rise significantly through the year. Falling returns on stocks and tighter credit would also plague the economy this year, the Fed said. I think that the Fed is really very scared right...

2008-12-31 00:37:53

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...

2008-12-17 07:14:12

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. With prices likely to be lower next month, why buy a car, a refrigerator or a DVD...

2008-12-12 00:35:51

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....

2008-12-10 23:46:21

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...

2008-12-03 10:32:33

U.S. shoppers and economists see price declines in different shades of alarm but many worry falling prices could put brakes on an already slow economy. The primary reason economists say deflation hurts the economy: Consumers hesitate. With prices falling, I do a lot more comparison shopping, San Diego bargain hunter Loralisa Gainsborough, told USA Today. Deflation's effect could also be measured by Costco Wholesale's TV sales in October, the newspaper said. The company sold 20 percent more...

2008-11-25 12:36:03

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. That is more important than anything else at present. King told members of the Treasury Select Committee, The Times of London reported Tuesday. We may need to cut (the) bank rate more than we would otherwise have...

2008-11-21 07:22:49

The surprise development of falling prices has experts worried that such a hiccup could greatly stall the U.S. economy, economists said. In a prolonged period of falling prices, consumers hold off on purchases. Consumers know if they wait longer, the chances of them not having a good selection is fairly small and the chances are that the prices will be lower, economist Charles McMillion, at MBG Information Services told The Washington Post. So why buy today? This is exactly why economists...

2008-11-18 08:23:39

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....

2008-06-18 12:00:16

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. That was up from a modest 0.2% rise in April and marked the biggest increase since November. However, stripping out energy and food prices, which can swing widely from month to month, the "core"...


Word of the Day
barratry
  • The offense of persistently instigating lawsuits, typically groundless ones.
  • An unlawful breach of duty on the part of a ship's master or crew resulting in injury to the ship's owner.
  • Sale or purchase of positions in church or state.
This word ultimately comes from the Old French word 'barater,' to cheat.
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